Seeking to boost its working capital amid supply chain shortages, luxury electric-vehicle enterprise Lucid Group, which has a market capitalization of about $27 billion, has filed for a new offering of approximately $8 billion. Last month, the company halved its production forecast for electric vehicles.
The electric-vehicle manufacturer filed for a mixed shelf offering, under which it may sell different types of securities in one or more separate offerings with the size, price, and terms to be determined at the time of sale.
Reuters reported that the company, which has KSA’s Public Investment Fund as a prime investor, saw a fall of about 1.9% in shares to $15.85 in extended trading, adding to its 57.5% losses this year.
In line with KSA’s sustainability efforts, Lucid announced its entry into the Saudi market this year. Overall, PIF owns 60% of the luxury electric-vehicle group; Lucid has forged strategic agreements with the Ministry of Investment of Saudi Arabia, the Saudi Industrial Development Fund (SIDF), the Economic City at King Abdullah Economic City, Gulf International Bank, and the Saudi government for the sale of 100,000 cars.
As per the agreements, the respective enterprises would provide Lucid with finance and incentives of approximately $3.4 billion over 15 years until the launch of a manufacturing hub with a capacity of 155,000 units annually. Over time, the facility would bolster Lucid’s production cap to approximately 500,000 EVs on a year-on-year basis, the company had said previously.
Most Innovative Companies comes to the Middle East this October! Click here to know more.
Loading the player...
What's an ultra app? Does the Middle East need it?