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The Public Investment Fund’s (PIF) Ayar Third Investment is purchasing 374.7 mn shares in US luxury EV maker Lucid Group in a private placement, Lucid said in a press release (pdf) on Thursday. The private placement — part of a follow-on public offering from Lucid — will see Ayar Third Investment keep its ownership steady at around 58.8%.
The offering: Lucid Group priced an underwritten follow-on public offering of 262.4 mn shares of its common stock, it said in the statement. The shares will be offered on Nasdaq, over-the-counter markets, or through negotiated sales — at market prices, fixed prices, or otherwise. The offering was expected to close on 18 October, pending standard closing conditions. Reuters had coverage.
The private placement is set to close by Thursday, 31 October, dependent on the public offering. If the underwriter exercises its option to buy up to 39.4 mn additional shares, Ayar will snap up more shares to maintain its stake, with a secondary closing to follow 10 business days after the option is triggered.
The sale comes as Lucid scrambles to shore up its finances and address steeper-than-expected losses, with its full 3Q earnings report due on 7 November.
Proceeds from the offering, along with Ayar’s private placement — which are expected to come at a combined USD 1.67 bn — will go toward capital expenditures, working capital, and other general corporate purposes.
Third time’s a charm? The fund invested USD 1.5 bn in Lucid back in August to keep the EV maker’s capex and working capital afloat. The lifeline was split between USD 750 mn in convertible stock via private placement and a USD 750 mn unsecured delayed draw term loan facility. This marked Ayar’s second investment in Lucid this year, following a USD 1 bn purchase of convertible preferred shares last March — both aimed at keeping the company in gear.
ADVISORS- BofA Securities is leading the public offering as the sole underwriter.
