Comment by DamienSF

The price would go down until it finds enough buyers for a given price and there will be a price for which the stock is attractive again. For instance, if a company raises capital by doubling the volume of its shares, at half the price the company will be worth the same so there is no reason why nobody wouldn't buy shares of the stock at half the price. Now if there is for some reason 0 buyers, the stock is illiquid and the stock price goes to 0 but the company can still issue new shares.