Ondas Holdings Inc. (ONDS) saw its stock price plummet 10.89% in pre-market trading on Tuesday following the announcement of a substantial $200 million common stock offering. The company, which specializes in industrial internet and drone solutions, priced its underwritten offering at $5.00 per share for a total of 40 million shares.

The offering, which is expected to close on September 10, 2025, subject to customary closing conditions, represents a significant dilution for existing shareholders. Ondas Holdings stated that it intends to use the net proceeds from the offering for corporate development and strategic growth initiatives, including potential acquisitions and investments.

While the capital raise may strengthen the company's financial position and fuel future growth, the immediate market reaction reflects investors' concerns about share dilution. The offering price of $5.00 per share likely contributed to the downward pressure on the stock, as it represents a discount to the previous closing price.

Oppenheimer & Co. Inc. is serving as the lead book-running manager for the offering, with Stifel acting as the joint book-running manager. The company has also granted the underwriters a 30-day option to purchase up to an additional 6 million shares, which could potentially increase the total offering size.