Why Lucid Stock Is Hitting The Brakes Thursday

Lucid Group Inc LCID shares are moving lower Thursday after the company announced the pricing of a public offering and private placement.

What Happened: Lucid commenced a public offering of approximately 173.54 million shares for proceeds of approximately $1.2 billion. The offering is expected to close on or about June 5.

In addition, 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. The private placement is expected to close on June 26.

Lucid expects to use the net proceeds for general corporate purposes, which may include capital expenditures and working capital.

Following the purchases, Ayar Third Investment Company will remain the majority stockholder of Lucid with approximately 60.5% ownership of the company's outstanding common stock.

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LCID Price Action: Lucid has a 52-week high of $21.78 and a 52-week low of $6.09. 

The stock was down 13% at $6.75 at the time of writing, per Benzinga Pro.

Photo: courtesy of Lucid.