What happened Shares of ChargePoint (NYSE: CHPT) crashed today, down by 10% as of 3:30 p.m. EDT, after the company announced it is conducting a secondary offering. The news comes just a few months after ChargePoint completed its merger with a special purpose acquisition company (SPAC). So what The secondary offering is being launched in order for existing shareholders, primarily early venture capital (VC) funds, to sell stock in an orderly fashion. ChargePoint is not issuing any new shares and will not receive any of the proceeds from the deal; this is not a dilutive capital raise. Instead, existing shareholders are collectively selling 12 million shares of stock, while the underwriters have a greenshoe option for another 1.8 million shares. Image source: ChargePoint. The largest seller participating in the offering is Linse Capital, which is looking to sell 7.9 million shares. Funds affiliated with Quantum Energy Partners will offer another 3.1 million shares, and Braemar Energy Ventures wants to get rid of 2.2 million shares. All three of those VC funds previously invested in ChargePoint as a private company between 2012 and 2018. A handful of executives, including CEO Pasquale Romano and Chief Revenue Officer Michael Hughes, are selling a smaller number of shares. Now what ChargePoint is likely attempting to mitigate the risk of a sell-off associated with the expiration of lock-up agreements, which is scheduled for Aug. 26. The company's board has the ability to unilaterally waive the lock-up restrictions and is choosing to do so in this case for all of the shares being offered for sale. 10 stocks we like better than Chargepoint Holdings Inc.When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Chargepoint Holdings Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Evan Niu, CFA owns shares of Chargepoint Holdings Inc. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source