Saudi-backed electric car maker Lucid plans to raise $3bn

Saudi-backed electric car maker Lucid plans to raise $3bn

Saudi-backed electric carmaker Lucid Group said it plans to raise around $3bn through a stock offering, with the majority coming from the Public Investment Fund (PIF) and its affiliate Ayar Third Investment Company. PIF, the luxury EV maker’s majority shareholder has agreed to buy 266 million shares worth about $1.8bn in a private placement. The remainder will be raised from a public offering of 173.5 million shares of common stock. “The private placement is expected to close on June 26, 2023, and is subject to completion of the public offering and customary closing conditions,” Lucid said in a regulatory filing. Ayar expects to maintain its majority 60.5 per cent shareholding of the electric vehicle maker after the equity offering. Lucid plans to use the proceeds from the offering and private placement for general corporate purposes including capital expenditures and working capital. The additional funds come as the automaker, just like its peers, is struggling with mounting losses and tightening cash reserves amid recession fears and a price war sparked by market leader Tesla. Lucid had about $3.4bn in cash and about $700m in available credit lines as of March 31, according to its first-quarter earnings report. The California-based automaker reported