Saudi PIF-backed Lucid in talks to go public via Klein’s SPAC

By Shilpa Annie Joseph, Desk Reporter
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Saudi Arabia’s Public Investment Fund (PIF) backed American automotive company Lucid Motors is reportedly approaching an agreement to go public via a merger with a blank-check business founded by investment banker Michael Klein.

According to reliable sources, the combined entity is valued at $15 billion. The special purpose acquisition firm has been in negotiation to raise between $1 billion and $1.5 billion in funding from institutional investors to support the deal. The valuation and the amount of additional funds may vary based on the demands of the investors.

A deal for the electric vehicle maker could be announced on Tuesday. Negotiations are ongoing, but people involved in the deal say there will be some chance of failure.

As per the reports, Klein, a former Citigroup rainmaker, will use Churchill Capital Corp IV, his largest SPAC that has raised more than $2 billion, for the transaction.

The representative for Lucid Motors declined to comment about the deal. A representative for Klein could not be reached immediately for comment.

Klein has played a pivotal role in directing the investments of the kingdom, acting as an adviser to its Public Investment Fund. Among other deals, he advised on the Saudi Aramco initial public offering.

Several electric vehicle makers have done deals with SPACs as startups aim to bulk up and raise money to compete with US-based industry leader Tesla. Lucid would be one of the most established electric vehicle companies to take this path. And, the merger of the company will be the biggest in a string of deals by electric vehicle makers.

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