Oklo Inc. (OKLO) saw its shares drop sharply by 5.42% in pre-market trading on Friday. The decline follows 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 pre-market drop, Oklo's stock had surged earlier in the week, closing up 15.6% in regular trading on Thursday. Analysts remain mixed on the stock, with a median price target of $108.50 and a "Street high" target of $175.