Quantum Computing stock sank in premarket trading Monday after the company said it planned to raise $750 million in an oversubscribed private placement.

The company first announced Sunday evening that it had entered into agreements with institutional investors for the purchase and sale of more than 37 million shares of common stock.

Titan Partners Group, a New York-based investment bank, will act as the sole placement agent for the offering, Quantum Computing said. The offering is expected to result in gross proceeds of $750 million before expenses, and is set to close on Oct. 8.

Quantum Computing said it plans to use the proceeds to “fully fund commercialization” and make strategic moves such as acquisitions, growing staff numbers, and establishing the capabilities to produce quantum hardware at scale.

CEO Yuping Huang, who assumed the role earlier this year, noted that the company had raised $1.64 billion since November 2024, giving it “the strongest balance sheet among publicly traded quantum computing companies.”

The company said just last month that it planned to raise $500 million in a private placement with several large existing shareholders and one new investor. The offering closed at the end of September.

“Our focus now shifts to expedite the transition from a quantum technology innovation company to a leading quantum hardware manufacturer,” Huang said, adding that the company is sufficiently funded to execute on its business plan through 2028.

Shares slumped 13% to $21.35 Monday, snapping a three-day winning streak and putting the stock on pace for its largest same-day percentage drop since August, according to Dow Jones Market Data. The stock move appeared to reflect concerns over potential dilution.

Ascendiant Capital Markets analyst Edward Woo reiterated a Buy rating on the stock last week, arguing that the price could touch $40 amid sustained demand for high performance computing. “By being early in this rapidly growing industry, we believe Quantum is well-positioned to capture and drive a meaningful market share and industry growth,” Woo added.

Shares of industry peers Rigetti Computing and D-Wave Quantum were falling 3.1% and 2.2%, respectively, after hitting record highs on Friday. IonQ was down 2.3%.