While firms such as Fisker (FSR.N) have recorded a rise in their shares, others including Nikola (NKLA.O) have declined. Lucid Motors to Go Public in Merger with Churchill Capital Corp IV, Bolstering Lucid’s Vision to Redefine Luxury, Performance and Efficiency in the Sustainable Electric Vehicle Market Lucid Group, Inc. Several other prominent players in the sector have also merged with special purpose acquisition companies (SPACs) to go public. Newark, California-based Lucid is the latest beneficiary of increasing demand for electric vehicles, fueled by tougher emission regulations globally, the Biden administration's green wave push and the rise of Tesla. (dba, Lucid Motors) and Churchill Capital Corp IV announced that they had entered into a definitive merger agreement. Lucid brings a lot in terms of performance, but investors should "realize it is risky to buy a company with no revenue and such a large market capitalization," he added. But that represents a major execution risk," said Matthew Kennedy, senior strategist at Renaissance Capital, a provider of institutional research and IPO ETFs. "Buyers expect they (Lucid) will fully ramp up over the next few years. Lucid shares were last up about 9% on Monday, having opened at $25.24.ĭespite the strong investor interest, some analysts raised questions about the steep valuation fetched by a company that virtually had no revenue. Sovereign wealth fund PIF, the engine of Crown Prince Mohammed bin Salman’s economic transformation plans for Saudi Arabia, manages a portfolio worth $400 billion. PIF, BlackRock (BLK.N) and others in February invested another $2.5 billion in Lucid as part of the merger. Lucid's listing is a huge dividend for Saudi Arabia's Public Investment Fund, which had invested more than $1 billion in the company in 2018 for a substantial stake. The deal gave the combined company a pro-forma equity value of $24 billion. Article continues below advertisement Lucid would then receive. Its one of the most eagerly awaited SPAC deals in recent years. Lucid, which is run by an ex-Tesla Inc (TSLA.O) engineer, had agreed to go public in February through a merger with Churchill Capital Corp IV. The CCIVLucid merger closure date has been set to Jul. July 26 (Reuters) - Shares of Lucid Group Inc (LCID.O) rose as much as 19% in their Nasdaq debut on Monday after the electric vehicle maker completed its merger with a blank-check company backed by Wall Street dealmaker Michael Klein.
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