Investing.com -- Diamondback Energy Inc. shares are trading roughly 3.2% lower on Wednesday morning, after the company priced a secondary share offering late Tuesday.

The company announced the pricing of an underwritten public offering of 11 million shares of common stock by selling stockholder SGF FANG Holdings, LP. The offering will generate approximately $1.9 billion in gross proceeds for the selling stockholder, representing pricing of just under $173 per share. The company's shares closed at $178.37 on Tuesday.

Diamondback will not receive any proceeds from the sale.