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An affiliate of Saudi Arabia’s Public Investment Fund (PIF) has committed $1.5 billion to Lucid Group. The company announced its second quarter results with revenues reaching $200.6 million.
The Nasdaq-listed firm said it has entered into agreements with its majority stockholder, Ayar Third Investment Company, an affiliate of Saudi Arabia’s $925 billion PIF, to purchase $750 million of convertible preferred stock via private placement and provide for a $750 million unsecured delayed draw term loan facility, subject to certain terms and conditions.
Lucid said it intends to use net proceeds from the private placement and any proceeds from the term loan for general corporate purposes, which may include, capital expenditure and working capital.
“We ended the second quarter with $4.28 billion in total liquidity and remain committed to maintaining a healthy balance sheet to execute on our strategic vision. The additional $1.5 billion commitment by an affiliate of the PIF announced is expected to provide sufficient liquidity into at least the fourth quarter of 2025,” Gagan Dhingra, Interim CFO and Principal Accounting Officer at Lucid said.
Ayar’s investment into Lucid comes months after the PIF affiliate announced plans to purchase $1 billion of newly created series of convertible preferred stock via private placement in March.
The company is now building up to the launch of Lucid Gravity, its first electric SUV, which will start production from late 2024.
(Reporting by Bindu Rai, editing by Seban Scaria)