Shares of Camping World Holdings Inc. (NYSE: CWH) took a severe hit on Wednesday, plummeting by 9.24% as the company grappled with the fallout from a dilutive share offering and disappointing third-quarter earnings results.

The steep decline was triggered by Camping World's announcement on Tuesday of plans to sell $300 million worth of Class A common stock, with an option for underwriters to purchase an additional $45 million. The proceeds from the offering are intended to be used for purchasing common units from the company's subsidiary, CWGS Enterprises, LLC, as well as for strengthening the balance sheet, working capital for growth, and debt pay down.

However, the share offering raised concerns among investors about potential dilution, as the introduction of new shares could reduce their ownership stake and earnings per share. This uncertainty, coupled with Camping World's underwhelming third-quarter earnings, weighed heavily on investor sentiment, resulting in a significant sell-off.