FLYEXCLUSIVE INC (FLYX) saw its shares plummet 16.74% during intraday trading on Friday, marking a sharp decline for the aviation company.

The drop follows the company's announcement of a proposed underwritten public offering of its common stock, priced at $6.65 per share. Public offerings often lead to dilution of existing shares, prompting short-term selling pressure as investors adjust to the increased supply of shares.

Investors reacted negatively to the news, with concerns over dilution and its impact on FLYEXCLUSIVE's valuation driving the stock lower. The offering, which aims to raise $15 million, comes despite the company's recent positive momentum, including a dealership agreement with Starlink announced earlier in the week.