(MENAFN) Lucid Group, an electric vehicle (EV) manufacturer based in California, has announced its plans to raise USD3 billion through a stock offering, with 66 percent of the funding coming from Saudi Arabia's Public Investment Fund (PIF). Ayar Third Investment Co., an affiliate of the PIF and Lucid's majority stockholder, has agreed to purchase up to 265.7 million shares in a private placement for an estimated amount of USD1.8 billion. The remaining funds will be raised through a public offering of 173.5 million shares of common stock. The private placement is expected to be concluded on June 26, 2023.
In a private placement, stocks are sold privately to investors who have been pre-selected. Following these transactions, Ayar Third Investment Co. intends to maintain its majority ownership of 60.5 percent of Lucid's outstanding common stock. The funds raised from the stock offering will be utilized by Lucid Group for general corporate purposes, including capital expenditures, working capital, and other operational needs.
Lucid Group has been making significant strides in its partnership with Saudi Arabia. Last year, the company signed an agreement to construct a plant in the Kingdom, with a capacity to produce 150,000 electric vehicles annually. This undertaking was made possible through collaborations with the Ministry of Investment of Saudi Arabia, the Saudi Industrial Development Fund, and the Economic City at King Abdullah Economic City. The investment from the PIF further solidifies the relationship between Lucid and Saudi Arabia, providing the necessary capital to support the company's expansion plans and technological advancements in the EV industry.
The stock offering represents a substantial milestone for Lucid Group, as it secures significant funding from the Saudi Arabian Public Investment Fund and positions the company for further growth and development in the global EV market. With the planned capital infusion, Lucid aims to strengthen its financial position and continue its commitment to delivering innovative and sustainable electric vehicles.
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