Shares of BigBear.ai Holdings (BBAI) plummeted 5.05% in pre-market trading on Monday, following the company's announcement of filing for a mixed shelf offering. The artificial intelligence solutions provider's stock took a hit as investors reacted to the potential dilution of existing shares.

According to a Securities and Exchange Commission (SEC) filing, BigBear.ai has submitted a mixed shelf registration, although the size of the offering was not disclosed. Mixed shelf offerings allow companies to issue various types of securities, including common stock, preferred stock, debt securities, or warrants, providing flexibility in raising capital over time.

While such filings are common for companies looking to strengthen their financial position or fund future growth initiatives, they often lead to short-term stock price declines. Investors typically view these offerings as potentially dilutive to existing shareholdings, which can put downward pressure on the stock price. As BigBear.ai moves forward with this strategic financial decision, market participants will be closely watching for further details on the size and nature of the potential offering.