FX.co ★ Lucid Group Announces Public Offering, Private Placement Of Around $1.67 Bln Of Shares; Stock Down

Lucid Group, Inc. (LCID), the automaker, announced on Thursday its decision to conduct an underwritten public offering consisting of 262.446 million shares, which is anticipated to conclude around October 18. Additionally, the company has given the underwriter a 30-day option to acquire up to an extra 39.367 million shares.

Lucid has also made an arrangement with its majority shareholder and affiliates of the Public Investment Fund, Ayar Third Investment Company, allowing Ayar to acquire 374.717 million shares from Lucid through a private placement. This private transaction is expected to finalize on October 31, after which Ayar aims to uphold its approximate 58.8% stake in Lucid's common stock.

The proceeds from these offerings are projected to support Lucid's general corporate purposes, which could encompass capital expenditures, working capital, among other uses.

In pre-market trading on the Nasdaq, LCID shares saw a decline of 18.29%, falling to $2.68.