<< Like this S-3 filed by Gamestop >>
First, GME is a horrible example, and doesn't compare at all to ZNOG.
<< when the pps was around $5 >>
Second, the PPS wasn't $5.
That S-3 for GME was filed after hours on 8 December. On that day, the share price closed at $16.94.
As a result of the S-3, the next day, the share price closed at $13.66 (a 24% drop).