RIYADH: Lucid Group plans to raise $3 billion through a stock offering, 66 percent of which will come from Saudi Arabia’s Public Investment Fund.
The California-based EV maker said Ayar Third Investment Co., which is its majority stockholder and an affiliate of the PIF, has agreed to buy as much as 265.7 million shares in a private placement for an estimated $1.8 billion,
It said the remainder will be raised from a public offering of 173.5 million shares of common stock.
The private placement is expected to close on June 26 of this year. A private placement is a process whereby stocks are sold privately to investors selected beforehand.
Following these purchases, Ayar Third Investment Co. anticipates maintaining its 60.5 percent ownership of Lucid’s outstanding common stock.
From Lucid’s perspective, the proceeds will be utilized for general corporate purposes including capital expenditures and working capital, among others.
Last year, Lucid signed a deal for the construction of a plant in the Kingdom that will produce 150,000 electric vehicles per year.
The company signed agreements with the Ministry of Investment of Saudi Arabia, the Saudi Industrial Development Fund, and the Economic City at King Abdullah Economic City.
The American luxury vehicles company is expected to receive financing and incentives of up to $3.4 billion over the next 15 years to build and operate the manufacturing facility in the Kingdom.
Located in King Abdullah Economic City, AMP-2 is the PIF-backed EV manufacturer’s first production facility outside the US.
“We are keen to achieve high and sustainable human capital localization in line with Vision 2030,” Global Vice President and Managing Director at Lucid Faisal Sultan told Arab News in April.
“With our recently launched Lucid Future Talent program — in collaboration with the Human Resources Development Fund — we plan to provide the right training to enrich and prepare local talent to fill future job opportunities in the Kingdom,” Sultan explained.