Claritev Corporation (CTEV) shares tumbled 9.59% in pre-market trading, following the announcement of a secondary offering by its largest shareholder. The healthcare payment solutions company, formerly known as MultiPlan, priced the offering at a substantial discount to its previous closing price, sparking a sell-off among investors.

Late Wednesday, Claritev announced the pricing of an underwritten public offering of 1.5 million Class A shares by selling stockholders at $51.50 per share. This price represents a 12.1% discount to the stock's last closing price. The primary seller in this offering is private equity firm Hellman & Friedman (H&F), which is reducing its stake in the company. After the sale, H&F's holdings will decrease to approximately 3.9 million shares, or 23.5% of Claritev's outstanding shares.

The significant discount and the reduction of stake by a major shareholder have likely contributed to the pre-market plunge. However, it's worth noting that Claritev will not receive any proceeds from this offering, as it involves existing shareholders selling their stakes. The offering is expected to close by Friday, with underwriters having a 30-day option to purchase up to an additional 225,000 Class A shares. Despite this setback, Claritev's stock has shown strong performance year-to-date, with shares up about fourfold. Additionally, all three analysts covering the stock maintain bullish ratings with price targets ranging from $80 to $95, suggesting potential long-term confidence in the company's prospects.