AAR Corp (AIR), a leading provider of aviation services, experienced a significant 24-hour plunge of 5.38% on Tuesday following the announcement of a public offering of 3 million shares of its common stock. The stock's sharp decline reflects investors' concerns about potential share dilution resulting from the capital raise.

According to the company's statement, AAR Corp is offering 3 million shares of common stock priced at $83 per share, with an additional 30-day option for underwriters to purchase up to 450,000 more shares. The aerospace solutions company plans to use the net proceeds, estimated at approximately $239 million (or $274.9 million if the underwriters exercise their full option), to repay outstanding debt under its unsecured revolving credit facility and for general corporate purposes, including potential future acquisitions.

While the stock offering aims to strengthen AAR Corp's financial position and provide flexibility for growth opportunities, the immediate market reaction has been negative. Investors are likely weighing the long-term benefits of debt reduction and increased financial flexibility against the short-term impact of share dilution. As trading continues, market participants will be closely monitoring any further developments or clarifications from the company regarding this significant financial decision and its potential impact on shareholder value.