Lucid plans to offer more than 260 million shares in an IPO, in addition to about 375 million shares to its main shareholder, the Saudi Public Investment Fund.
Aiar, a subsidiary of Saudi Arabia’s Public Investment Fund, announced that it intends to buy new shares from Lucid Electric Car Company, which seeks to raise new financing from the sale of 676.5 million shares in a public and private offering and a purchase option, according to a statement today, Thursday, October 17, 2024, according to what was reported by Bloomberg.
The American automaker, which opened an assembly plant in Saudi Arabia last September, is seeking cash to fund its general corporate purposes, which could include, among other things, capital expenditures and working capital, according to Reuters.
In addition to the private placement of about 374.7 million shares allocated to Aiyar, the company said it intends to sell 262.4 million shares in a public offering and granted Bank of America Securities a 30-day option to buy about 39.4 million additional shares.
The new investment will keep Ayar’s 58.8% stake in Lucid. With the funds raised, the Saudi sovereign wealth fund’s total investment in Lucid will reach $3.8 billion. The new private placement is expected to raise $1.32 billion based on the stock’s 50-day trailing average price, adding to the $1.5 billion Ayar invested in August after raising $1 billion in March.
The transaction is expected to close on October 31, 2024, while the IPO is scheduled to close “on or about” October 18, 2024.
Lucid shares decline
Lucid Motors (LCID) stock fell as much as 20% in premarket trading Thursday after the company announced plans to sell more than 262 million shares. The new stock offering sends shares lower ahead of Lucid’s first electric SUV, the Gravity, set to launch later this year.
Share prices are down more than 30% in 2024 and about 44% in the past 12 months.
The Public Investment Fund first invested in Lucid in 2018 and has continued to gradually buy more shares since the company went public in 2021 through a merger with a special purpose acquisition company.
In May 2023, Lucid had raised $3 billion through an IPO and an investment from Saudi Arabia’s Public Investment Fund.
Standard deliveries
According to company data, Lucid has achieved three consecutive quarters of record deliveries. With another 2,781 vehicles delivered in the third quarter, Lucid’s deliveries reached 7,142 in the first nine months of 2024.
In a filing with the U.S. Securities and Exchange Commission on Wednesday, Lucid said third-quarter revenue is expected to be between $199 million and $200 million.
As of September 30, 2024, Lucid had approximately $5.16 billion in liquidity, including approximately $4 billion in cash and cash equivalents.
