Shares of Karman Holdings (KRMN), a defense and space systems maker, tumbled 5.62% in pre-market trading on Tuesday, following the company's announcement of a secondary offering. The stock price fell to $52.80, reflecting investor concerns about potential dilution.

Late Monday, Karman Holdings launched a secondary offering of 20 million shares to be sold by existing stockholders. The selling shareholders include private equity firm Trive Capital and Karman CEO Tony Koblinski. Citigroup and Evercore ISI have been appointed as book-running managers for the proposed offering.

Despite the current drop, Karman Holdings has seen significant growth since its initial public offering (IPO) in February. The company went public with a 23 million share IPO priced at $22 per share, and the stock has more than doubled since its debut on February 13. All five brokerages covering the stock rate it as "buy" or higher, with a median price target of $50.50, according to data compiled by LSEG. The current pullback may present an opportunity for investors bullish on the space and defense sectors, though the impact of the secondary offering on the stock's near-term performance remains to be seen.