Lucid Group introduced on Might 31 that’s elevating roughly $3 billion via a brand new fairness providing, practically two-thirds of which comes from the Saudi funding fund that controls the EV startup.
Lucid mentioned that about $1.8 billion of the whole will come from a non-public placement of inventory with Saudi Arabia’s Public Funding Fund (PIF), which owns about 60.5% of Lucid. PIF’s stake will stay on the similar stage after the brand new funding spherical.
Extra particularly, PIF affiliate Ayar Third Funding Firm has agreed to buy from Lucid 265.7 million shares of widespread inventory in a non-public placement that is anticipated to shut on June 26, 2023.
The transaction implies a value of about $6.80 per Lucid share, in contrast with the inventory’s Might 31 shut of $7.76. Within the wake of the announcement, shares of the luxurious EV maker went down 9 p.c after market hours.
Lucid is constructing an electrical car plant in Saudi Arabia because the Arab nation’s authorities ordered 100,000 autos from the startup.
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The remaining $1.2 billion will probably be raised via a public providing of latest shares – 173.5 million – that began on Might 31, the corporate mentioned. The general public providing is anticipated to shut on or about June 5, 2023.
Lucid Group mentioned it will use the brand new money for “basic company functions,” together with capital expenditures and dealing capital, amongst different issues.
In keeping with its most up-to-date monetary report launched on Might 9, Lucid had about $3.4 billion in money and about $700 million in obtainable credit score traces as of March 31. Lucid CFO Sherry Home mentioned that was sufficient to fund the corporate not less than into the second quarter of 2024.
The $3 billion raised are crucial for Lucid, which struggles with growing losses and dwindling money reserves amid recession fears and a value conflict sparked by Tesla.
Lucid minimize its 2023 manufacturing forecast final month to “greater than 10,000 autos” from its earlier estimate of 10,000-14,000 autos. The corporate posted a first-quarter web lack of $780 million and a lower-than-expected first quarter income of just about $150 million.
The EV maker expects to unveil its second car, the Gravity SUV, later this 12 months, when it is going to additionally begin taking reservations. Manufacturing of the three-row SUV is on schedule to start out in 2024, CEO Peter Rawlinson mentioned on the Q1 2023 earnings name final month.