Electric vehicle manufacturer Lucid Group (LCID, Financial) announced a public offering of 262.5 million shares. Simultaneously, the Saudi sovereign wealth fund PIF and its affiliate Ayar Third Investment Company will purchase 375 million shares in a private placement. Following these transactions, Ayar is expected to maintain its ownership stake at approximately 58.8%.
This announcement led to a significant decline in Lucid's stock, with shares dropping over 12% post-market. Bank of America Securities is the exclusive underwriter for the public offering. Additionally, Lucid plans to grant the bank a 30-day option to buy nearly 39.37 million additional common shares.
Lucid intends to use the net proceeds from both the public offering and the private placement for general corporate purposes, which may include capital expenditures and working capital. In August, Lucid received a $1.5 billion cash infusion from PIF, marking their second vital funding this year.
In the second quarter, Lucid produced 2,110 electric vehicles, a 22% increase from the prior quarter, and delivered 2,394 vehicles. For the third quarter, Lucid estimates revenues between $199 million and $200 million, slightly above analysts' expectations of $196.4 million. The company produced 1,805 vehicles and delivered 2,781 units, surpassing analysts' delivery estimates of 2,334 units. Preliminary operating losses for the third quarter are projected to be between $765,000 and $790,000.
