Shares of Rigetti Computing (RGTI) plummeted 9.16% during intraday trading on Friday, following the company's announcement of a planned $350 million equity raise. The Berkeley, California-based quantum-computing firm filed for an at-the-market (ATM) equity sales program to be handled by Jefferies, triggering a significant sell-off among investors.

According to the company's SEC filing, Rigetti plans to use the net proceeds from any sales for working capital, capital expenditures, and general corporate purposes. The ATM offering allows the company to issue or sell shares of its common stock worth up to $350 million at various times, with Jefferies entitled to a commission of up to 3% of the gross proceeds. This move, while potentially strengthening Rigetti's financial position, has raised concerns about stock dilution among existing shareholders.

The sharp decline in Rigetti's stock price comes amid a broader downturn in the quantum computing sector. Other companies in the industry, including IonQ, D-Wave Systems, and Arqit Quantum, also experienced significant drops in their stock prices on the same day. This sector-wide slump suggests that investors may be reassessing the near-term prospects of quantum computing technologies or responding to broader market trends affecting high-tech and speculative stocks.