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Lucid (LCID.US) plunged more than 12% after hours! It announced the issuance of tens of millions of shares

AInvestWednesday, Oct 16, 2024 7:10 pm ET
1min read

Lucid Group (LCID.US) announced it will offer 262.5 million shares to the market in an IPO, while Saudi sovereign wealth fund PIF and Ayar (a PIF affiliate, Ayar Third Investment Company) will subscribe for 375 million shares in a private placement, which is expected to keep Ayar's stake at around 58.8%.

Following the news, Lucid's shares plunged over 12% in the after-hours trading on Wednesday.

Bank of America Securities is the sole underwriter for the IPO. The electric vehicle maker also plans to grant the bank a 30-day option to purchase up to 39.37 million common shares of Lucid.

Lucid said it intends to use the net proceeds from the IPO and the private placement by its major shareholder "for general corporate purposes, which may include capital expenditures and working capital."

In August, Lucid said PIF had agreed to provide the company with $1.5 billion in cash, its second much-needed funding this year.

Lucid produced 2,110 electric vehicles in the second quarter, up 22% from 1,728 in the first quarter; the company delivered 2,394 electric vehicles in the second quarter. In addition, Lucid estimated its third-quarter revenue at $199.9 million-$200 million, while analysts expected $196.4 million; the company produced 1,805 vehicles and delivered 2,781 vehicles (analysts expected 2,334 vehicles) in the third quarter; the third-quarter preliminary operating loss was $765,000-$790,000.

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