Constellation Energy Corp's stock fell sharply by 5.47% during intraday trading on Monday, as the company's shares came under significant selling pressure.

The decline was driven by the launch of a large-scale secondary public offering by certain existing shareholders. Constellation Energy announced an underwritten offering of 11 million common shares priced at $281 per share, which is expected to generate gross proceeds of approximately $3.1 billion. The offering price represented a discount to the stock's previous closing price.

The sale introduces a substantial new supply of shares to the market, with the 11 million shares representing roughly 3% of the company's total outstanding shares. This dilution concern, coupled with the discounted pricing, prompted selling pressure from investors. Notably, the company will not receive any proceeds from this offering, though it plans to repurchase 2 million of the shares from the underwriters.