Elbit Systems Ltd (ESLT), the Israeli defense electronics firm, saw its stock price plummet 5.01% in pre-market trading on Thursday. This significant drop comes in the wake of the company's announcement of a substantial public offering, which has raised concerns among investors about potential share dilution.

According to the company's statement, Elbit Systems plans to offer approximately 1.4 million new shares to the public. All shares in the planned offering will be sold by the company itself, with an additional provision granting underwriters a 30-day option to purchase up to 15% more shares. The newly offered shares are expected to be listed on the Nasdaq Global Select Market, expanding the company's presence in the U.S. stock market.

The market's immediate reaction reflects investors' apprehension about the dilutive effect of the new share issuance on existing stockholders. While Elbit Systems intends to use the net proceeds for general corporate purposes, potentially strengthening its financial position, the short-term impact on the stock price has been decidedly negative. As trading continues, market participants will be closely monitoring how Elbit Systems utilizes the raised capital and whether it can translate into growth opportunities that might offset the initial stock price decline.