BrightSpring Health Services Inc. (BTSG) shares plummeted 5.10% during intraday trading on Tuesday.

The sharp decline follows the pricing of a $823 million secondary offering, where an affiliate of private equity firm KKR and members of the company's management sold 20 million shares at $41.15 each, a 1% discount to the stock's last closing price. KKR's stake in the home healthcare and hospice provider will be reduced to 21.9% after the sale.

BrightSpring will concurrently repurchase approximately 1.46 million shares from the offering. Secondary offerings typically exert downward pressure on stock prices due to the increased supply of shares and discounted pricing offered to investors.