Lucid stock slides after pricing securities offering

Shares of Lucid Group (NASDAQ:LCID) fell Thursday morning after the company priced its previously announced securities offering.

The offering will be conducted from time to time in one or more transactions. The automaker plans to sell 262.44M shares of its common stock and has granted the underwriter, BofA Securities, a 30-day option to purchase up to 39,367,040 additional shares of its common stock.

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 price per share initially paid by the underwriter in the public offering. As a result of these purchases, Ayar expects to maintain its ~58.8% ownership of Lucid’s outstanding common stock.

Lucid (LCID) expects to raise around $1.67B from the stock offering and the corresponding private placement. Net proceeds will be used for general corporate purposes, which may include, among other things, capital expenditures and working capital.

Shares of Lucid Group (LCID) fell 17% premarket on Thursday.