Lucid shares drop on 262M stock offering

Lucid Group (NASDAQ:LCID) plans to sell more than 262M new shares, according to a recent filing with the U.S. Securities and Exchange Commission. The offering will be conducted from time to time in one or more transactions. The company also offered BofA Securities as the underwriter the option to purchase nearly 40M of additional shares.

The company also said its majority stockholder, Ayar Third Investment Company, an affiliate of Saudi Arabia’s Investment Fund, intends to purchase more than 374M shares in a private placement at the same time as the public offering of stock. This purchase will allow Ayar to maintain its 58.8% stake in the electric vehicle manufacturer. In the event BofA Securities exercises its option to purchase additional shares, Ayar has indicated it will also purchase shares directly from the company.

Lucid (LCID) shares have fallen more than 13% following the announced stock offering.