What's Going On With Lucid Stock Thursday? (UPDATED)

Editor’s note: This story has been updated with additional details.

Lucid Group Inc LCID shares are trading lower Thursday morning after the company announced the pricing of an offering and corresponding investment from an affiliate of the Public Investment Fund (PIF).

What To Know: Lucid shares turned sharply lower in extended trading Wednesday after the company said it commenced a public offering of 262,446,931 shares of its common stock. Lucid priced the offering Thursday morning, noting that it anticipates gross proceeds of approximately $1.67 billion.

In connection with the offering, Lucid announced that majority shareholder and PIF affiliate Ayar Third Investment Company agreed to purchase 374,717,927 shares of common stock from Lucid in a private placement. Ayar expects to maintain approximately 58.8% ownership of Lucid following the purchases.

Ayar will purchase the shares from Lucid at the same price initially paid by the underwriter in the public offering. Lucid intends to grant the underwriter a 30-day option to purchase up to 39,367,040 additional shares.

The offering is expected to close on or about Oct. 18. Lucid said it will use the net proceeds from the public offering and concurrent private placement for general corporate purposes, which may include capital expenditures and working capital.

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Lucid is due to report its third-quarter results after the market close on Nov. 7. Analysts are calling for a loss of 30 cents per share on revenue of $194.981 million, according to estimates from Benzinga Pro.

In a new filing, Lucid announced it expects to report third-quarter revenue of $199 million to $200 million. The company also anticipates a third-quarter loss from operations between $765 million and $790 million. Lucid noted that it had approximately $5.16 billion in total liquidity as of Sept. 30.

Lucid reported third-quarter deliveries earlier this month. The company said it produced 1,805 vehicles and delivered 2,781 vehicles during the period.

LCID Price Action: Lucid shares are down about 22% year-to-date. The stock was down 17.1% at $2.72 at the time of publication Thursday, according to Benzinga Pro.

Photo: courtesy of Lucid.