Shares of Lucid Group dropped by greater than 10% throughout after-hours buying and selling following the electrical car startup asserting a public providing of almost 262.5 million shares of its frequent inventory.

The announcement was made along with plans for Lucid’s majority stockholder and affiliate of Saudi Arabia’s Public Funding Fund, Ayar Third Funding Co., to buy greater than 374.7 million shares of frequent inventory from Lucid in a “non-public placement concurrently with the general public providing.”

Following the transaction, Ayar is predicted to keep up its approximate 58.8% possession of Lucid’s excellent frequent inventory, Lucid stated in a launch.

Lucid stated the transaction is topic to “sure situations, on the identical worth per share initially to be paid by the underwriter for the general public providing.”

BofA Securities is appearing as the only real underwriter for the general public providing. The EV maker intends to grant the agency a 30-day choice to buy as much as almost 39.37 million further shares of Lucid’s frequent inventory as effectively.

Lucid intends to make use of the web proceeds from the general public providing, in addition to from the non-public placement by its majority stockholder, “for basic company functions, which can embrace, amongst different issues, capital expenditures and dealing capital,” the corporate stated.

The introduced transactions come two months after Lucid stated the PIF had agreed to produce the corporate with $1.5 billion in money, because the EV maker seems so as to add new fashions to its product line.

Lucid ended the second quarter with money and money equivalents of $1.35 billion, in contrast with $1.37 billion on the finish of 2023.

Lucid’s gross sales and monetary efficiency haven’t lived as much as preliminary expectations following greater prices, slower-than-expected demand for EVs and advertising and consciousness issues for the corporate.

Shares of Lucid have fallen 22% this 12 months. The inventory closed Wednesday at $3.28 a share, up lower than 1%. The corporate’s market cap is $7.6 billion. It had 2.32 billion shares excellent.