ADT Inc. (ADT) shares experienced a sharp pre-market decline of 5.17% on Monday. The significant drop occurred ahead of the regular trading session.

The sell-off follows the company's announcement of a proposed secondary public offering of 102 million shares held by entities managed by affiliates of Apollo Global Management. This sale represents all the remaining ADT shares owned by Apollo. Concurrently, ADT intends to repurchase up to 29.1 million shares from the underwriters as part of its existing $1.5 billion share repurchase program.

The market reaction suggests investor concern over the substantial increase in share supply from the secondary offering, which could dilute existing shareholders. While the concurrent share buyback may provide some support, the scale of Apollo's exit appears to have driven negative sentiment in the pre-market session.