RIYADH: Lucid Motors Inc. is nearing a deal to go public through a merger with a blank-check company started by investment banker Michael Klein (SPAC) that could be announced early next week, according to people familiar with the matter, according to Asharq Bloomberg.
The combined entity will be valued at as much as $15 billion.
The special purpose acquisition company has been in talks to raise between $1 billion and $1.5 billion in funding from institutional investors to support the transaction. The valuation and the amount of additional funding could still change based on investor demand, the sources added.
A deal for the electric vehicle maker could be announced on Tuesday, they added, and the talks are ongoing but could still fall apart, Asharq Bloomberg said.
Klein, a former Citigroup Inc. employee, will use Churchill Capital Corp IV, his largest SPAC that has raised more than $2 billion, for the transaction, the sources said.
Lucid is backed by Saudi Arabia’s sovereign wealth fund.
Lucid Motors to expand Saudi presence, scouting retail locationsPIF-backed Lucid Motors constructs first phase of EV factory