Why has Oddity Tech stock dropped today?

© Reuters. Why has Oddity Tech stock dropped today?

Shares of Oddity Tech (ODD) tumbled more than 5% in after-hours trading Tuesday after the company announced that it would launch a secondary public offering of 4 million Class A ordinary shares.

These shares are currently held by a fund managed by L Catterton, which is offering underwriters the option to purchase up to an extra 600,000 shares within a 30-day period.

Oddity itself is not selling any shares and will not gain any financial proceeds from this offering, it said in the press release.

The offering will be managed by a team of leading financial institutions, with Goldman Sachs, J.P. Morgan Securities, Morgan Stanley, Allen & Company, and Evercore Group serving as the joint lead book-running managers. Barclays will also have a lead role in managing the book for the offering.

Oddity’s shares have climbed more than 6%, though its year-to-date performance remains slightly negative.