Highwoods Properties' stock plummeted 5.08% during intraday trading on Wednesday, following the company's announcement of a common stock offering.

The real estate investment trust filed for an offering of up to $300 million in common stock, according to SEC filings. The company also entered into equity distribution agreements with financial institutions including Jefferies LLC, allowing for the issuance and sale of common stock and warrants.

Equity offerings typically lead to stock price declines as they dilute existing shareholders and increase the supply of shares in the market. Investors often interpret such capital raises as potential signs of financial need or negative outlook, leading to selling pressure.