Lucid Group Inc (NASDAQ:LCID) has announced it will raise $3 billion through a public offering of its stock and a commitment by its majority shareholder Ayar Third Investment Company, an affiliate of Saudi Arabia’s Public Investment Fund, to buy shares worth roughly $1.8 billion.
In a statement, the EV manufacturer said the public offering will include about 173.5 million shares. To maintain its shareholding at about 60.5%, it said Ayar has agreed to purchase about 265.7 million shares in a private placement, expected to close on June 27, 2023.
The company said it plans to use the net proceeds from the public offering and the private placement for general corporate purposes, including capital expenditure and working capital.
Last year, Lucid announced an agreement with Saudi Arabia, under which the government will purchase up to 100,000 vehicles over ten years, with an initial commitment to purchase 50,000 vehicles and an option to purchase up to an additional 50,000 vehicles over the same period.
While some of those will come from Lucid’s existing Arizona factory, the EV manufacturer has announced plans to construct AMP-2, a world-class Lucid production factory in Saudi Arabia with a capacity of 155,000 electric vehicles.
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