Electric vehicle maker Lucid announced on Wednesday that it plans to sell 262.4 million common stock shares via public offering. The announcement sent the company’s stock down by more than 15% in after-market trading.
According to the company, BofA Securities, its sole underwriter, will receive a 30-day option to buy up to 39.36 million of additional shares. Additionally, Ayar Third Investment, the affiliate of Saudi Arabia’s Public Investment Fund (PIF), will acquire 374.7 million shares of common stock, which will allow it to remain the company’s majority holder with a 58.8% stake.
Ayar recently also provided Lucid with a $1.5 billion cash infusion in order to help the company develop and launch new EV models.
Lucid said it intends to use the net proceeds from the public offering, as well as from the private placement by its majority stockholder, for “general corporate purposes, which may include, among other things, capital expenditures and working capital.”
Last week, Lucid announced it delivered 2,781 units in its third quarter, beating the estimates of analysts. However, its production of 1,805 EVs in the same period fell below expectations. The company expects its revenue for the past quarter to be in the range of $199 million to $200 million, better than the $196.4 million in revenue expected by analysts.
Lucid’s stock closed at $3.28 per share on Wednesday, being 21% down year to date. The stock later dropped to $2.77 per share after a 15.55% plunge.