Shares of Navitas Semiconductor Corp (NVTS) tumbled 5.49% in pre-market trading on Friday, following the company's announcement of a private placement of common stock for proceeds of $100 million. This significant move in the stock price reflects investors' immediate reaction to the news of potential share dilution.

The private placement, while providing the company with additional capital, often leads to a decrease in stock price as it increases the total number of outstanding shares, effectively diluting the ownership stake of existing shareholders. Investors typically view such actions with caution, as they can impact the stock's value in the short term.

While the infusion of $100 million could potentially strengthen Navitas Semiconductor's financial position and fund future growth initiatives, the market's initial response suggests concerns about the immediate impact on shareholder value. As trading progresses, investors will likely be watching closely for more details on how the company plans to utilize these funds and whether the long-term benefits will outweigh the short-term stock price pressure.