Shares of Enovix Corporation (ENVX) plummeted over 5% in pre-market trading on Monday, following the company's announcement that it had completed a secondary equity offering, raising approximately $96 million in net proceeds.

The battery technology company disclosed that it sold 21.3 million shares at $4.70 per share in the offering, which was upsized from the previously announced offering size of 17.5 million shares due to strong investor demand.

While the equity raise provides Enovix with additional capital to fund its growth initiatives, the share dilution resulting from the offering appears to be weighing on the stock price. Investors often view secondary offerings negatively as they reduce the ownership stake and earnings per share for existing shareholders.