The announcement of a follow-on offering typically has a mixed impact on a company's stock price. On one hand, it can lead to dilution of existing shares, which might put downward pressure on the stock price. On the other hand, the influx of capital can be used for growth initiatives, which could have a positive impact in the long term. The short-term impact is often neutral to slightly negative, as the market absorbs the news and evaluates the potential use of the additional funds.