VSE Corporation's stock plummeted 9.87% during Monday's intraday trading session. The sharp decline followed the company's announcement of a significant capital raising initiative to fund a major acquisition.

The aviation services firm commenced separate underwritten public offerings of $650 million in common stock and $350 million in tangible equity units, totaling $1 billion. The net proceeds are intended to partially finance its previously announced $2 billion acquisition of Precision Aviation Group from private equity firm GenNx360 Capital Partners.

Such substantial equity offerings typically lead to shareholder dilution, which often triggers selling pressure as investors adjust to the increased share count and the costs associated with the acquisition. The market reaction reflects concerns over the financial implications of the deal and the dilution effect on existing shareholders.