Rocket Lab Corporation (NASDAQ:RKLB) shares fell on Thursday as traders weighed dilution concerns following the company's filing to offer up to $3 billion of common stock.

Rocket Lab Files $3 Billion Stock Offering

Late Wednesday, Rocket Lab filed a prospectus supplement for an equity distribution agreement allowing the company to offer and sell up to $3 billion of common stock over time.

The company said it plans to use the proceeds for future growth initiatives, including potential acquisitions, as well as general corporate and working capital purposes.

Capital Needs Remain In Focus

Rocket Lab builds rockets and spacecraft for civil, defense, and commercial customers, including its Electron and Neutron launch vehicles.

The company's capital-intensive business model makes financing announcements especially sensitive after the stock's recent rally.

Rocket Lab said it had more than $2 billion in total liquidity as of March 31, including about $1.21 billion in cash and cash equivalents.

SpaceX IPO Adds Industry Spotlight

The financing update also comes as Rocket Lab's main competitor, SpaceX,