(Bloomberg) -- Lucid Group Inc. shares slid after the electric-vehicle maker said it plans to sell 262.4 million shares of common stock in a public offering that would be worth about $860 million at today’s closing price.
The company also gave its underwriter, BofA Securities, a 30-day option to purchase as many as 39.4 million additional shares, Lucid said Wednesday in a statement. The sale comes two months after Lucid got a cash infusion of as much as $1.5 billion from an affiliate of Saudi Arabia’s Public Investment Fund.
In a separate deal, Ayar Third Investment Company, the PIF affiliate and Lucid’s largest shareholder, will purchase 374.7 million shares of common stock in a private placement deal timed to the public offering. The move will allow Ayar to maintain its 58.8% ownership of the company.
Lucid’s shares fell as much as 15% in post-market trading following the announcement. Its stock was down about 22% this year as of the close of trading Wednesday.
The company, one of the few pure play EV makers in the US, said it plans to use the proceeds for general corporate purposes, including capital expenditures and working capital. It declined to comment further.
Lucid aims to start production of its newest vehicle, an SUV called Gravity, later this year.
The announcement comes about a week after the company said it delivered 2,781 vehicles during its third quarter, beating analyst expectations. It produced 1,805 electric vehicles, lower than analyst projections. The carmaker currently makes just one vehicle, the Lucid Air.
On Wednesday, Lucid also announced preliminary revenue of $199 million to $200 million for the quarter, beating the $196.4 million average estimate from analysts compiled by Bloomberg. It will report full earnings Nov. 7.
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