Lucid Motors on its way to becoming a publicly traded company

Lucid Motors announced a merger agreement Monday night with special-purpose acquisition company (SPAC) Churchill Capital IV Corp. (CCIV) propelling the EV company toward an IPO. 

After the announcement, CCIV stocks plummeted for two days in a row, closing down 18.5% at $28.70 a share on Wednesday.

As part of the deal, Lucid will receive approximately $2.1 billion cash contribution by CCIV and $2.5 billion in private investment in the public equity (PIPE) deal, for a total of about $4.6 billion. The money will help expand the new Lucid factory in Casa Grande and start production and deliveries of two vehicles — the Lucid Air and the Gravity luxury SUV — which will be produced in the Casa Grande factory.

Saudi Arabia’s sovereign fund will remain the largest shareholder of the combined company, which will have a transaction equity value of $11.75 billion. This transaction includes the largest ever SPAC-related common stock PIPE, according to the announcement made by Lucid.

The PIPE deal is priced at $15 a share.