CEVA Inc (NASDAQ: CEVA), a leading licensor of wireless connectivity and smart sensing technologies, saw its stock price plummet 7.17% in a 24-hour period on Monday. The significant drop came after the company announced plans for a new public offering of common stock.

According to the company's statement, CEVA has commenced an underwritten public offering of 3 million shares of its common stock. J.P. Morgan is reported to be acting as the lead book-runner for the offering. While the exact pricing details were not immediately available, the market reacted swiftly to the news, reflecting investors' concerns about potential share dilution.

Public offerings are a common method for companies to raise capital, which can be used for various purposes such as funding research and development, paying off debt, or financing acquisitions. However, such offerings often lead to a decrease in stock price as investors anticipate an increase in the total number of outstanding shares, which can dilute the value of existing holdings. As more details about the offering and CEVA's plans for the use of proceeds become available, investors will likely be watching closely to assess the long-term implications of this move on the company's financial position and growth strategy.