Firefly Aerospace Inc. (FLY) saw its stock price plummet 5.12% during intraday trading on Wednesday. The sharp decline followed the company's announcement of a significant public stock offering.

The space technology company disclosed plans to offer 12 million shares, comprising 4 million new shares and 8 million shares being sold by existing stockholders. Such offerings typically lead to dilution for current shareholders, which often pressures the stock price as the market absorbs the increased supply of shares.

While the company recently won a $75 million NASA contract for a lunar mission, which had previously buoyed the stock, the announcement of the equity offering overshadowed that positive news in intraday trading, leading to the sell-off. The company stated it intends to use the net proceeds for general corporate purposes, including supporting business growth.