Lucid Stock Is Tumbling Wednesday: What's Driving The Action?
Portfolio Pulse from Adam Eckert
Lucid Group Inc (NASDAQ:LCID) shares fell in after-hours trading following the announcement of a public offering and investment from the Public Investment Fund affiliate. The company plans to use the proceeds for general corporate purposes. Lucid's third-quarter earnings are expected on Nov. 7.
October 16, 2024 | 9:29 pm
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Lucid Group's stock fell after announcing a public offering and investment from PIF affiliate. The offering includes 262.4M shares, with an option for 39.4M more. PIF's Ayar Third Investment Company will maintain a 58.8% stake. Proceeds will be used for corporate purposes.
The announcement of a large public offering typically leads to a decrease in stock price due to dilution concerns. The involvement of PIF and the maintenance of a significant stake by Ayar Third Investment Company may provide some stability, but the immediate market reaction is negative. The upcoming earnings report adds uncertainty.
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