Oklo Inc. (OKLO) saw its shares drop sharply by 5.88% in post-market trading on Thursday. The decline followed the company's announcement of an equity distribution agreement to offer up to $1.5 billion of its Class A common stock.

The proposed offering, disclosed in an SEC filing, could lead to shareholder dilution, prompting a negative reaction from investors. Such agreements often weigh on stock prices as they increase the number of shares outstanding, potentially reducing earnings per share and existing shareholders' stakes.

Despite the post-market drop, Oklo's stock had surged earlier in the day, closing up 15.6% in regular trading. The volatility highlights investor sensitivity to capital-raising activities, even as the company remains a focus in the nuclear technology sector.