Lucid Group intends to secure $3 billion in funding, with a primary focus on the Saudi Arabian PIF.
California-based electric vehicle (EV) manufacturer, Lucid Group, has announced its plans to raise $3 billion through a combination of a stock offering and a private placement, with the Saudi Arabian Public Investment Fund (PIF) contributing 66 percent of the total amount.
Lucid Group revealed that Ayar Third Investment Co., an affiliate of the PIF and its majority stockholder, has agreed to purchase up to 265.7 million shares in a private placement, amounting to an estimated $1.8 billion. The remaining $1.2 billion will be raised through a public offering of 173.5 million shares of common stock.
The private placement is expected to conclude on June 26, 2023. Private placements involve the sale of stocks to pre-selected investors in a private transaction. Ayar Third Investment Co. aims to maintain its 60.5 percent ownership of Lucid’s outstanding common stock following the completion of the transaction.
Lucid Group plans to utilize the proceeds for general corporate purposes, including capital expenditures and working capital. The funding will support the company’s ongoing expansion and development efforts.
In 2020, Lucid Group entered into an agreement to construct an EV manufacturing plant in Saudi Arabia with a capacity of producing 150,000 electric vehicles annually. The company secured agreements with the Saudi Ministry of Investment, the Saudi Industrial Development Fund, and the Economic City at King Abdullah Economic City for the establishment of the facility.
As part of the agreement, Lucid Group is set to receive financing and incentives totaling up to $3.4 billion over the next 15 years to build and operate the manufacturing plant in the Kingdom. The state-of-the-art facility, known as AMP-2 and located in King Abdullah Economic City, is Lucid Group’s first production facility outside the United States. This partnership reinforces the Kingdom’s dedication to attracting foreign investment, promoting local job creation, and fostering sustainable economic growth. With a focus on innovation, sustainability, and localization, Lucid Group is poised to contribute to the transformation of the automotive industry and shape the future of mobility.
Faisal Sultan, Global Vice President and Managing Director at Lucid, emphasized the company’s commitment to supporting Saudi Arabia’s Vision 2030, which focuses on human capital localization and economic diversification. Sultan highlighted Lucid’s Lucid Future Talent program, developed in collaboration with the Human Resources Development Fund, which aims to provide training and development opportunities for local talent to fill future job positions within the Kingdom.
With the funds raised, Lucid Group intends to further enhance its position as a leading player in the EV market. The company has gained acclaim for its luxury electric vehicles, with its flagship model, the Lucid Air, receiving critical acclaim and recognition for its cutting-edge technology, impressive range, and luxurious features.
Lucid Group’s commitment to sustainability extends beyond manufacturing electric vehicles. The company is dedicated to driving innovation in renewable energy solutions, enhancing battery technology, and supporting a cleaner, greener transportation ecosystem. By combining technological advancements with luxurious design, Lucid Group aims to revolutionize the EV industry and provide customers with high-performance, sustainable mobility options.
With the significant investment from the Saudi Arabian PIF, Lucid Group aims to further solidify its position in the EV market and accelerate its growth trajectory. The company has gained recognition for its luxury electric vehicles and cutting-edge technology, positioning itself as a key player in the global shift toward sustainable transportation solutions.
The successful completion of the funding round will provide Lucid Group with the necessary resources to expand its manufacturing capabilities, enhance research and development initiatives, and drive innovation in the EV industry. As the demand for electric vehicles continues to rise, Lucid Group is poised to make a substantial impact on the automotive market with its advanced technology and commitment to sustainability.
