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

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

Following the transaction, Ayar is anticipated to take care of its approximate 58.8% possession of Lucid’s excellent widespread inventory, Lucid said in a release.

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

BofA Securities is performing as the only 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 extra shares of Lucid’s widespread inventory as properly.

Lucid intends to make use of the online proceeds from the general public providing, in addition to from the non-public placement by its majority stockholder, “for basic company functions, which can embody, 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 provide the corporate with $1.5 billion in cash, because the EV maker seems to be 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 have not lived up to initial expectations following greater prices, slower-than-expected demand for EVs and advertising and marketing 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.