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Lucid Motors, the American luxury electric vehicle (EV) manufacturer, agreed to go public by combining with the blank-cheque corporation Churchill Capital IV Corp (CCIV) in a $11.75 billion agreement that priced the merged company.

Lucid is the latest company to tap the initial public offering market, run by former Tesla engineer Peter Rawlinson, with investors rushing into the EV business, prompted by the growth of Tesla Inc and the toughening of pollution regulations in Europe and elsewhere.

Via mergers with so-called special purpose acquisition companies (SPACs) last year, other prominent players in the sector went public. SPACs are publicly traded shell firms set up to acquire private firms. Without needing to go through a conventional initial public offering, these private companies effectively become publicly traded.

Although some deals such as those involving electric carmaker Fisker have provided solid returns for investors, others have given up short-term gains, such as Nikola, a manufacturer of electric pick-up trucks.

In volatile extended trading, CCIV’s publicly traded stock fell almost a third to $40.35, giving the combined company a market capitalisation of around $64 billion. By contrast, it is worth around $76bn to General Motors Co.

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