ADT Inc.'s stock experienced a sharp intraday decline of 5.76% on Monday. The security and smart home solutions provider saw significant selling pressure during the trading session.

The drop is directly attributed to the company's announcement of a secondary public offering of 102 million shares, representing the entire remaining stake held by entities managed by affiliates of Apollo Global Management. This move signifies Apollo's complete exit from ADT. Concurrently, ADT has agreed to repurchase up to 29.1 million shares from the underwriters as part of its existing $1.5 billion share repurchase program.

Market sentiment turned negative as investors reacted to the substantial increase in share supply from the secondary offering, which raised concerns about potential dilution for existing shareholders. Despite the concurrent buyback plan, the scale of Apollo's divestment appears to have driven the sell-off.