(Reuters) – Cash-strapped electric vehicle maker Lucid (NASDAQ:) said on Thursday that an initial public offering of more than 262 million shares would likely bring it proceeds of $1.67 billion.
News of the stock sale, as well as the company’s recent warning of a larger-than-expected third-quarter loss, sent shares of the luxury electric sedan maker down more than 17% in pre-market trading.
Lucid expects to report an operating loss 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 almost 375 million shares in a private placement.
Ayar expects to retain ownership of about 59% of the company’s outstanding shares, Lucid said.
In August, an affiliate of the sovereign wealth fund provided an additional $1.5 billion, which Lucid initially expected would provide enough liquidity through the fourth quarter of next year.
At the end of the second quarter, Lucid had approximately $1.35 billion in cash and cash equivalents.
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.
