Lucid Plans to Raise $1.67 Billion Through Share Sale

The financially struggling electric luxury sedan maker, Lucid Group, announced plans to raise approximately $1.67 billion through a combined public offering and private placement of 637 million shares.

Lucid made this decision following a 16.5% drop in its share price, reaching its lowest level since July 2. The company anticipates an operating loss between $765 million and $790 million.

As part of its fundraising strategy, Lucid intends to offer more than 262 million shares to the public, while also entering into a private placement agreement with Ayar Third Investment, an affiliate of Saudi Arabia's Public Investment Fund (PIF) and Lucid’s largest shareholder, to sell approximately 375 million shares.

While this capital raise will help boost liquidity, some analysts view it as a cautionary sign.

Lucid plans to use the proceeds from the public offering and private placement for general corporate purposes, capital expenditures, and working capital to support ongoing operations.