New Lucid electric cars are parked in front of a Lucid Studio showroom on May 24, 2024 in San Francisco, California.
Justin Sullivan | Getty Images
shares of Light Team It fell more than 10% in after-hours trading after the electric vehicle startup announced an initial public offering of nearly 262.5 million shares of its common stock.
The announcement was made in conjunction with plans by Lucid’s majority shareholder and Saudi Arabian affiliate. Public Investment FundAyar Third Investment Co. to purchase more than 374.7 million shares of Lucid’s common stock “in a private placement in conjunction with the public offering.”
Following the transaction, Ayar is expected to retain ownership of 58.8% of Lucid’s outstanding common stock, Lucid said in a statement.
Lucid said the transaction is “subject to certain conditions, at the same price per share, to be paid by the underwriter initially for the public offering.”
BofA Securities is the sole underwriter of the public offering. The EV maker wants to give the company a 30-day option to buy nearly 39.37 million additional shares of Lucid’s common stock.
Lucid intends to use the net proceeds from the public offering, as well as from the majority shareholder private placement, “for general corporate purposes, which may include, but are not limited to, capital expenditures and working capital,” the company said.
The announced transaction comes two months after Lucid said PIF had agreed to supply the company $1.5 billion in cashAs the EV maker looks to add new models to its product line.
Lucid ended the second quarter with cash and cash equivalents of $1.35 billion, compared with $1.37 billion at the end of 2023.
Lucid’s sales and financial performance Initial expectations have not been met following higher costs, slower than expected Demand for EVs and company marketing and awareness issues.
Lucid shares are down 22% this year. The stock closed at $3.28 per share on Wednesday, down 1%. The company’s market capitalization is $7.6 billion. He had 2.32 billion shares.
