Viavi Solutions' stock plummeted 5.32% during intraday trading on Wednesday, as the company faced significant selling pressure.

The decline was primarily driven by investor concerns over equity dilution following the company's announcement of plans to conduct an approximately $500 million underwritten public offering of common stock. Net proceeds from the offering are intended primarily to repay debt, with remaining funds allocated to working capital and general corporate purposes.

The stock-specific pressure was compounded by broad weakness across the Communication Equipment sector, with several peers also trading lower during the session, amplifying the downward move in Viavi Solutions' share price.