Elbit Systems Ltd (ESLT) experienced a significant 24-hour plunge of 6.04% in pre-market trading, following the company's announcement of a public offering of its shares. The Israeli defense electronics company's stock price dropped sharply as investors reacted to the potential dilution of existing shares.

According to the company's statement, Elbit Systems is launching a public offering of approximately 1.4 million of its shares. All shares in the planned offering will be sold by the company itself. Additionally, Elbit intends to grant underwriters a 30-day option to purchase up to an additional 15% of shares, further expanding the offering's scope. The newly offered shares are expected to be listed on the Nasdaq Global Select Market.

Elbit Systems plans to use the net proceeds from this offering for general corporate purposes. While this move may strengthen the company's financial position, the market's immediate reaction reflects concerns about share dilution and its impact on existing stockholders. The significant stock price decline highlights the sensitivity of investors to such corporate actions, especially in the defense sector where capital raises can be seen as indicators of future business strategies or financial needs.