Shares of Claritev Corporation (CTEV) plummeted 7.80% in after-hours trading on Wednesday following the company's announcement of a public offering of Class A common stock by selling stockholders. The sharp decline comes as investors react to potential dilution of their holdings.

According to the company's statement, selling stockholders will be offering 1,500,000 shares of Claritev's Class A common stock. This move is likely to increase the total number of outstanding shares, effectively diluting the ownership stake of existing shareholders.

The announcement, made after the market close, triggered a sell-off as investors anticipated the potential impact on share value. Public offerings often lead to downward pressure on stock prices due to the increase in supply of shares available in the market.

Claritev Corporation has not provided details on the pricing of the offering or how the proceeds will be used. Investors will be closely watching for further information on the terms of the deal and its implications for the company's financial position and growth strategy.