Forgent Power Solutions, Inc. (FPS) experienced a significant pre-market plunge of 5.28% on Tuesday, as the stock came under heavy selling pressure.

The sharp decline is directly attributed to the company's announcement of a $35 million public offering of its Class A common stock. The offering, with Goldman Sachs, Jefferies, and Morgan Stanley serving as book-runners, comprises two components: approximately $23.3 million worth of stock to be sold by existing shareholders and roughly $11.7 million in new shares to be issued by the company itself.

This dual-structure offering is designed to provide liquidity for existing shareholders while raising capital for the company, but the news triggered immediate negative sentiment, leading to a substantial drop in the stock's price during the pre-market session.