Shares of Akebia Therapeutics (NASDAQ: AKBA) plunged 31.34% in intraday trading on Thursday, following the company's announcement of a deeply discounted public offering of common stock. The biopharmaceutical firm, which focuses on developing treatments for kidney disease, priced its underwritten public offering at a substantial discount, triggering concerns about share dilution among investors.

Akebia Therapeutics revealed that it has priced a public offering of 25 million shares at $2.00 per share, aiming to raise approximately $50 million in gross proceeds. This offering price represents a significant 29.6% discount to the stock's previous closing price, which likely contributed to the steep decline in share value. Additionally, the company has granted underwriters a 30-day option to purchase up to 3.75 million additional shares at the offering price, potentially further diluting existing shareholders.

The company stated that it intends to use the net proceeds from the offering to fund working capital and general corporate purposes, including research and development activities and commercial initiatives for its products and pipeline candidates. While the capital raised through this offering could provide Akebia with necessary funds to advance its kidney disease-focused pipeline and support ongoing operations, the immediate market reaction reflects investors' concerns about the dilution of their ownership stakes. As the market digests this news, investors will be closely watching how Akebia utilizes the newly raised capital to drive growth and potentially improve its market position in the competitive biopharmaceutical sector.