(Reuters) – Cash-strapped electric vehicle maker Lucid (NASDAQ ) said on Thursday that a public offering of more than 262 million shares would likely net it $1.67 billion in profits.
News of the stock sale, as well as the company's latest warning of a larger-than-expected loss for the third quarter, sent shares of the maker of luxury electric sedans down more than 17% in pre-date trading. marketing.
Lucid expects to report an operating loss in the range of $765 million to $790 million for the quarter ended Sept. 30, compared with analyst estimates of $751.7 million, according to data compiled by LSEG.
The company also signed an agreement with Ayar Third Investment, an affiliate of the Saudi Arabian Public Investment Fund and the company's largest shareholder, to sell nearly 375 million shares in a private placement.
Ayar expects to maintain his ownership of about 59% of the company's outstanding shares, Lucid said.
The sovereign wealth fund subsidiary committed an additional $1.5 billion in August, which Lucid initially hoped would provide enough liquidity through the fourth quarter of next year.
Lucid had about $1.35 billion in cash and cash equivalents at the end of the second quarter.
The company said it intends to use the proceeds from the share sale and private placement for general corporate purposes, capital expenditures and working capital.
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