EV-maker Lucid expects to raise $1.67 billion from stock sale

(Reuters) – Cash-strapped electric vehicle maker Lucid (NASDAQ:) said on Thursday a public offering of more than 262 million shares would likely fetch it $1.67 billion in proceeds.

The stock sale news as well as the company’s latest warning of a bigger-than-expected loss for the third quarter sent shares of the luxury electric-sedan maker down more than 17% in premarket trading.

Lucid expects to report a loss from operations in the range of $765 million to $790 million for the quarter ended Sept. 30, compared with analysts’ estimates of $751.7 million, according to data compiled by LSEG.

The company also signed a deal with Ayar Third Investment, an affiliate of Saudi Arabia’s Public Investment Fund and the company’s biggest shareholder, to sell nearly 375 million shares in a private placement.

Ayar expects to maintain its ownership of about 59% of the company’s outstanding shares, Lucid said.

The sovereign wealth fund’s affiliate committed an additional $1.5 billion in August, which Lucid had initially expected to provide sufficient liquidity till 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 proceeds from the stock sale and private placement for general corporate purposes, capital expenditure and working capital.