3D Systems Corporation (NYSE:DDD) shares plunged 4.64% to $54.01 in after hours trading Tuesday after the company announced a secondary offering of common stock. The Rock Hill, South Carolina-based company said Thursday that it is offering 5.95 million shares in a public offering. 3D Systems will use the proceeds to fund acquisitions as well as for working capital.

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3D Systems set to raise $335 million

The secondary offering appears small on the surface. But the offering comes at a time as 3D Systems Corporation (NYSE:DDD) shares have just started recovering after losing about 40% of their value this year. 3D Systems has 103.51 million outstanding shares. So, the latest offering will dilute the existing shareholders by 5.7%. The 3D printing company is expected to raise about $335 million before price adjustments, discounts and other expenses.

3D Systems Corporation (NYSE:DDD) said Canaccord Genuity is acting as the underwriter of the public offering. The underwriters have been granted an option for 30 day to buy up to 892,500 additional shares of the company. After rallying over 172% in 2013, 3D Systems shares have been falling this year amid execution concerns. It has acquired dozens of companies in the past few months. Now the company faces the challenge of integrating those acquisitions in a coherent manner. 3D Systems aims to double its revenue in the next couple of years.

3D Systems starts R&D activities at its Oregon facility

Earlier this year, 3D Systems Corporation (NYSE:DDD) acquired Brazilian prototyping firm Robtec in an attempt to branch into Latin America. It has also started R&D activities at the Wilsonville, Oregon facility that it purchased from Xerox Corp (NYSE:XRX) for $32.5 million. The company has partnered with ScanSource to expand its distribution footprint. 3D Systems is developing 3D-printed modules for Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG)’s Project Ara.

On May 2, Imperial Capital analyst Ashok Kumar initiated coverage of 3D Systems Corporation (NYSE:DDD) with $60 price target and an Outperform rating. Meanwhile, JPMorgan analysts Paul Coster and Mark Strouse slashed their price target from $43.50 to $40 on May 13.