Lucid Group shares are trading lower after the company announced a public offering of 173,544,948 shares of its common stock and the corresponding investment by an affiliate of PIF for aggregate proceeds of ~$3.0 billion.
Portfolio Pulse from Benzinga Newsdesk
Lucid Group announced a public offering of 173,544,948 shares of its common stock, with an affiliate of PIF investing for aggregate proceeds of ~$3.0 billion. This news has led to a decline in LCID's share price.
May 31, 2023 | 9:15 pm
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Lucid Group's share price is trading lower after announcing a public offering of 173,544,948 shares and a corresponding investment by a PIF affiliate for ~$3.0 billion.
The announcement of a public offering of a large number of shares typically leads to a decline in the share price, as it dilutes the value of existing shares. In this case, Lucid Group's share price is trading lower due to the announcement of the public offering and the investment by a PIF affiliate, which will result in an increase in the number of outstanding shares and a dilution of the value of existing shares.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100