Lucid Group, Inc. (NASDAQ: LCID) experienced a significant drop of 16.62% in its shares on Thursday, with prices hitting $6.47. The sharp decline in stock value came after the company made a major announcement regarding its pricing of a public offering of common stock, along with a corresponding investment by an affiliate of PIF, yielding a substantial $3.0 billion in gross proceeds.
Lucid Group, Inc. recently disclosed the pricing details of its underwritten public offering, involving the sale of 173,544,948 shares of its common stock. This offering is expected to generate around $1.2 billion in gross proceeds for Lucid. The shares may be made available for purchase directly to buyers, through agents or brokers on Nasdaq, or in the over-the-counter market. The sale may occur at fixed prices, prevailing market prices, or through negotiated transactions.
The public offering is anticipated to conclude on or around June 5, 2023, pending customary closing conditions. BofA Securities, Inc. has been appointed as the book-running manager for this offering.
Moreover, Lucid has also reached an agreement with its majority stockholder and PIF affiliate called Ayar Third Investment Company (“Ayar”). Ayar has committed to purchasing 265,693,703 shares of Lucid’s common stock in a private placement, generating approximately $1.8 billion in gross proceeds. The private placement is set to finalize on June 26, 2023, subject to the completion of the public offering and customary closing conditions. As a result of these acquisitions, Ayar is expected to maintain its ownership of approximately 60.5% of Lucid’s outstanding common stock.
The funds obtained from both the public offering and the private placement will be utilized by Lucid for general corporate purposes. This includes capital expenditures and meeting working capital requirements.
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