Firefly Aerospace Inc. (FLY) experienced a significant after-hours plunge of 6.07% on Tuesday, reversing gains from the regular trading session.

The sharp decline followed the company's announcement of a proposed public offering of its common stock. Firefly is offering 4 million shares, while certain selling stockholders are offering 8 million shares. The selling stockholders also granted underwriters a 30-day option to purchase up to an additional 1.8 million shares.

Such offerings typically introduce dilution for existing shareholders and increase the supply of shares available in the market, which can exert downward pressure on the stock price in the near term. The company stated it intends to use the net proceeds for general corporate purposes, including supporting the growth of its core business and recently awarded programs.