Business

EV maker Lucid announces $3 billion raise from Saudi public wealth fund and stock offering

Products You May Like

In this article

In an aerial view, a sign is posted on the exterior of Lucid headquarters on March 29, 2023 in Newark, California. Electric vehicle maker Lucid announced plans to lay off 1,300 workers, 18 percent of its workforce, as part of a restructuring plan. 
Justin Sullivan | Getty Images

Lucid Group said on Wednesday that it is raising about $3 billion through a new equity offering, with the majority coming from the Saudi fund that controls the luxury electric-vehicle maker.

Shares of the company fell more than 6% after hours.

Lucid said that about $1.8 billion of the total will come from a private placement of stock with Saudi Arabia’s Public Investment Fund (PIF). The remainder will be raised through a public offering of new shares that commenced Wednesday, the company said.

The PIF owns about 60.5% of Lucid. The new funding round is structured to keep its stake at the same level.

Lucid said it will use the new cash for “general corporate purposes,” including capital expenditures and working capital.

Lucid had about $3.4 billion in cash and about $700 million in available credit lines as of March 31, according to its most recent report.

Products You May Like

Articles You May Like

JPMorgan creates new role overseeing junior bankers as Wall Street wrestles with workload concerns
Boeing freezes hiring in sweeping cost cuts as it grapples with factory worker strike
U.S. lawmakers introduce bill to put regulations on sports betting operators
Lawmakers are ‘demeaning their role’ by trying to influence the Fed, House finance chair says
Wyoming Voters to Consider Property Tax Changes, but Sound Property Tax Relief Is Not on the Ballot

Leave a Reply

Your email address will not be published. Required fields are marked *