AXT Inc's stock experienced a significant decline intraday, plummeting 9.75% as selling pressure intensified during Monday's trading session.

The sharp drop was primarily driven by dilution concerns following the company's announcement of a public offering of approximately 8.6 million common shares priced at $64.25 per share, aiming to raise around $550 million. The offering price was set at a significant discount to the prior closing price, amplifying shareholder concerns about dilution. Proceeds from the offering are intended to support its Beijing Tongmei Xtal Technology subsidiary and general corporate purposes.

Compounding the selling pressure, multiple executives and directors have been actively reducing their holdings, with net insider sales totaling approximately $43.3 million over recent months and zero insider purchases recorded. The company, which has not achieved GAAP profitability in three years, faces additional uncertainty with first-quarter earnings scheduled for later in the week.