Precigen (PGEN) saw its stock price plummet 5.28% in after-hours trading on Tuesday, following the announcement of a significant stock offering. The biotechnology company filed to sell 143.81 million shares of common stock for holders, a move that has evidently spooked investors.

The substantial size of the offering has raised concerns about potential dilution of existing shareholders' stakes. When a company issues a large number of new shares, it can decrease the ownership percentage and voting power of current stockholders. Additionally, the increased supply of shares in the market often puts downward pressure on the stock price.

This development comes at a crucial time for Precigen, as biotechnology companies often require significant capital to fund research and development efforts. While the stock offering may provide the company with necessary funds or allow existing holders to monetize their investments, the market's immediate reaction suggests that investors are wary of the potential impact on share value. As trading resumes in the regular session, all eyes will be on Precigen to see how the stock performs and whether the company provides any additional context for this substantial offering.