Lucid has announced a major public offering of 262,446,931 shares of its common stock. The move comes at a critical time as Lucid seeks to strengthen its financial position, with plans to use the proceeds from the offering for “capital expenditures, working capital, and potential growth initiatives,” according to a press release.
Alongside the public offering, Lucid’s majority stockholder, Ayar Third Investment Company, an affiliate of Saudi Arabia’s Public Investment Fund (PIF), is set to purchase 374,717,927 shares in a private placement. This will allow Ayar to maintain its significant 58.8% ownership stake in Lucid after the public offering.
BofA Securities will serve as the sole underwriter for the offering, with Lucid also giving them a 30-day option to purchase up to 39,367,040 additional shares, if there is a market need for it. If that happens, Ayar has committed to buying more shares to retain its stake.
This is just the latest move to bolster Lucid’s cash reserves. The most recent came just two months ago with an investment of $1.5 billion from PIF.
Lucid has faced financial difficulties in 2024, with shares of the company dropping by over 20% since the beginning of the year. Lucid ended the second quarter of 2024 with $1.35 billion in cash reserves, but with losing more than $130,000 on each Lucid Air sedan sold, and production of the Gravity SUV set to start soon, they will need much more than that to last into 2026.
The company’s stock fell further following the announcement, down by nearly 12% in after-hours trading.
