Saudi Arabia’s PIF sovereign wealth fund will change into the second-largest shareholder of Aston Martin with an almost 17 % stake in a capital elevate aimed toward paying off debt and shoring up its enterprise.

Aston Martin mentioned it deliberate to lift 653 million kilos ($773.15 million) by PIF’s 78 million pound funding and a separate rights concern of 575 million kilos.

The Saudi fund will personal 16.7 % stake in Aston Martin, behind the 18.3 % holding by Chairman Lawrence Stroll’s Yew Tree can have after the rights concern, and will probably be entitled to 2 board seats.

Present second-largest shareholder, Mercedes-Benz will personal about 9.7 % after the capital improve.

Aston Martin is confronted with with excessive debt, a torrid inventory fall and a struggling Formulation One group.

The automaker has had a bumpy experience since its preliminary public providing in late 2018. Its London-listed shares have fallen practically 73 % to this point this yr. They jumped 10 % on Friday morning after hitting a file low earlier.

Half of the brand new capital will probably be used to repay debt, Aston Martin mentioned on Friday. The corporate had a debt of 957 million kilos on the finish of March. It’ll additionally serve to speed up future capital expenditure.
PIF, which owns stakes in electrical carmaker Lucid and British supercar group McLaren, didn’t instantly reply to a Reuters’ request for remark.

Individually, Aston Martin additionally reported wholesale volumes of two,676 within the first half, down from 2,901 a yr in the past. It expects to promote greater than 6,660 items for the full-year.