Lucid Motors strikes SPAC deal to go public with $24 billion valuation
Lucid Motors reached an agreement to become a publicly traded company through a merger with special-purpose acquisition company Churchill Capital IV Corp, in the largest deal yet between a blank-check company and electric vehicle startup.
The combined company, in which Saudi Arabia’s sovereign fund will continue to be the largest shareholder, will have a transaction equity value of $11.75 billion. Private investment in the public equity deal is priced at $15 a share, putting the implied the pro-forma equity value at $24 billion.
The announcement comes more than a week after Bloomberg, citing unnamed sources, reported a deal was close to being finalized.
Lucid follows a string of other, albeit smaller valued, SPAC mergers with electric vehicle startups that have been announced this year, including Arrival, Canoo, Fisker and Lordstown Motors.
Several EV infrastructure companies including EVgo and ChargePoint have also become public companies via SPAC mergers.
Lucid might have been the most anticipated.
The hype and speculation that has been rampant for weeks drove up the stock price of Churchill Capital IV Corp from its opening price of $10 a share more than 470% since January 2021. The skyrocketing share price, plummeted more than 30% after the details of the deal were announced.
The private investment and cash from Churchill will provide roughly $4.4 billion in total funding to Lucid.
That capital will be put to work to speed up and expand…