Select Water Solutions Inc (WTTR) experienced a significant pre-market plunge, with its stock price falling 8.65% during Friday's pre-market trading session.
The sharp decline follows the company's announcement of pricing for a public offering of its Class A common stock. Select Water Solutions priced the offering at $12.75 per share for approximately 13.7 million shares, with underwriters having an option to purchase an additional 2.1 million shares.
Public offerings typically create downward pressure on stock prices due to dilution concerns as additional shares enter the market. The company stated it plans to use the net proceeds from the offering for general corporate purposes, which may include funding infrastructure projects, acquisitions, or debt repayment.