Claritev Corporation (CTEV) shares tumbled 9.59% in pre-market trading on Thursday, following the announcement of a secondary offering by a major shareholder. The healthcare payment solutions company, formerly known as MultiPlan, saw its stock price react negatively to the news of a significant stake reduction by private equity firm Hellman & Friedman (H&F).

The offering, priced at $51.50 per share, represents a substantial 12.1% discount to the stock's previous closing price. H&F is selling 1.5 million shares of Class A common stock, with an option for underwriters to purchase an additional 225,000 shares. This move will reduce H&F's holdings to approximately 3.9 million shares, or 23.5% of Claritev's outstanding shares.

The discounted pricing and the reduction of stakes by a major shareholder appear to be the primary factors driving the pre-market plunge. It's worth noting that Claritev will not receive any proceeds from this offering, as it involves existing shares being sold by stockholders. Despite the current drop, Claritev's stock has shown strong performance year-to-date, with shares up about fourfold. The offering is expected to close by Friday, with Barclays, Guggenheim, and Wells Fargo leading the underwriting, joined by Citigroup and Piper Sandler as bookrunners.