Shares of Navitas Semiconductor Corp (NVTS) plummeted 16.98% during intraday trading on Friday, following the company's announcement of a $100 million private placement of common stock. The semiconductor firm disclosed plans to issue approximately 14.8 million new shares at $6.75 each, significantly below the previous day's closing price.

The sharp decline in Navitas' stock price reflects investors' immediate reaction to the potential dilution of existing shares. Private placements often lead to stock price drops due to their dilutive effect on current shareholders. By increasing the total number of outstanding shares, each existing shareholder's ownership percentage is effectively reduced. Moreover, the discounted price of the new shares puts additional downward pressure on the stock.

While the $100 million capital raise could potentially strengthen Navitas Semiconductor's financial position and fund future growth initiatives, the market's initial response suggests concerns about the immediate impact on shareholder value. The company stated that the net proceeds would be used for working capital and other general corporate purposes. As trading progresses, investors will likely be watching closely for more details on how Navitas plans to utilize these funds and whether the long-term benefits will outweigh the short-term stock price pressure.