Why Lucid Shares Are Backing Up After Hours

Lucid Group Inc LCID shares are trading lower in Wednesday's after-hours session after the EV company announced a public offering and private placement.

What Happened: Lucid commenced a public offering of 173,544,948 shares of its common stock. In addition to the offering, the company said its majority stockholder Ayar Third Investment Company, an affiliate of the Public Investment Fund, has agreed to purchase more than 265 million shares in a private placement for approximately $1.8 billion. 

Ayar Third Investment Co owns approximately 60.5% of Lucid's outstanding common stock. The private placement is expected to close on June 26.

Lucid anticipates combined gross proceeds from the public offering and private placement of approximately $3 billion. The company expects to use the net proceeds for general corporate purposes, which may include capital expenditures and working capital.

See Also: Why Chewy Stock Is Bouncing Higher After Hours

LCID Price Action: Lucid shares were down 5.93% after hours at $7.32 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Lucid.