LifeStance Health Group, Inc. (LFST) shares plummeted 9.99% in pre-market trading on Thursday following news of a secondary offering by major shareholders.

The mental healthcare provider announced that certain holders would sell 25 million shares, with the company repurchasing 7 million offering shares from sole underwriter JPMorgan. The offering was priced at $7.04 per share, representing a 5% discount to the stock's previous close.

Private equity firm TPG, LifeStance's largest investor with approximately 160.7 million shares, is selling about 20.7 million shares in the offering, while Summit Partners is selling approximately 4.3 million shares. The secondary offering totals about $176 million based on the offering price.