Lucid Motors, an electric luxury car maker, is close to finalizing a deal to go public with a USD12 Billion valuation. The action comes as Michael Klein’s blank check acquisition firm backed the transaction, according to people familiar with the matter.
The merger between Lucid and Klein’s special purpose acquisition company Churchill Capital IV would be the largest amid electric vehicle companies such as Nikola and Fisker, which have also gone public in SPAC deals. However, neither company has confirmed the impending agreement.
Churchill’s stock shot up 30% to USD52 during midday trading Tuesday and has been halted for small periods due to volatility.
According to sources, Churchill Capital IV has been in talks with investors to raise over USD1 Billion amid selling shares in a private investment in public equity (PIPE) transaction for the deal with Lucid. They said that the PIPE size could top USD1.5 Billion as per investor demand.
SPAC’s such as Churchill IV are simply shell companies that raise money for an IPO to merge with a private company which then becomes publicly traded. SPAC mergers have become a popular IPO alternative for many companies that seek less regulatory scrutiny.
Klein has raised several SPACs and completed deals with companies such as healthcare-services company MultiPlan and analytics firm Clarivate.