Lucid Group, Inc. has formally declared the beginning of a public providing of 173,544,948 shares of its widespread inventory right now, Could 31, 2023. This transfer by Lucid Group is ready to boost round $3.0 billion in gross proceeds.
BofA Securities, Inc. will function the book-running supervisor for this providing. The shares shall be obtainable for buy every so often in a wide range of strategies, together with direct gross sales to purchasers, via brokers on Nasdaq, over-the-counter transactions, negotiated transactions, or a mixture of these strategies. The pricing shall be versatile and might be at a set value, market costs on the time of sale, or at negotiated costs.
Ayar Third Funding Firm (“Ayar”), an affiliate of the Saudi Public Funding Fund (PIF) and a majority stockholder of Lucid, may even be enjoying a major function on this growth. Ayar has agreed to buy 265,693,703 shares of Lucid widespread inventory in a non-public placement for a complete value of about $1.8 billion. Topic to the completion of the general public providing and normal closing circumstances, the non-public placement is anticipated to shut on June 26, 2023. Consequently, Ayar plans to maintain its present possession stake of about 60.5% in Lucid’s excellent widespread inventory.
Lucid Group goals to make the most of the online proceeds from the general public providing and the non-public placement for numerous company functions, which could embody capital expenditures and dealing capital.
The general public providing is being performed in accordance with Lucid’s efficient shelf registration assertion on Type S-3, inclusive of a base prospectus, filed with the Securities and Trade Fee (SEC), and a prospectus complement. Potential traders are suggested to familiarize themselves with the preliminary prospectus complement, the accompanying base prospectus, and different associated paperwork filed or to be filed by Lucid with the SEC.
On the finish of this 12 months’s fiscal first quarter, Lucid reported a money stability of roughly $3.4 billion and credit score traces price about $700 million. Sherry Home, the corporate’s Chief Monetary Officer, assured that these assets ought to adequately fund Lucid’s operations up till not less than the second quarter of 2024. The corporate has minimize jobs and has struggled with mass manufacturing.
Share of Lucid dropped 8.7% in after-hours buying and selling after the information.