Lucid's stock drops more than 12% in pre-market trading after the announcement of details regarding the new offering.

Shares of the American electric car manufacturer Lucid Motors experienced a sharp decline during trading on Thursday, after the company announced details of its public offering of an additional 262,446,931 shares of its common stock, in a public offering valued at approximately $860 million at today’s closing price.

Bank of America Securities is acting as the manager for the additional offering, and the manager will allow the sale of shares through various methods, as Lucid plans to grant an option for 30 days to purchase an additional 39,367,040 shares.

At the same time, Ayar Investment, a subsidiary of the Saudi Public Investment Fund and the major shareholder in Lucid, intends to purchase 374,717,927 shares in a concurrent private offering, at the same share price as the public offering, which will help it maintain its 58.8% ownership stake.

The proceeds from both the public and private offerings are intended to be used for general corporate purposes, including capital expenditures and working capital. In trading, Lucid's shares (Nasdaq: LCID) fell by about 12.04% to $2.885 during pre-market trading.