Mobileye gained more than 30% in its IPO after being spun off from Intel
Amnon Shashua, Mobileye Global Inc. president and chief executive officer and Patrick Gelsinger, chief executive officer of Intel Corporation, during the company’s IPO in New York, U.S., Wednesday, Oct. 26, 2022, outside the Nasdaq MarketSite.
Michael Nagle | Bloomberg | Getty Images
In a year that hasn’t seen significant tech IPOs in the US, Mobileye offers investors an opportunity to tap into growth territory. But this is not a new name for the market.
Mobileye was publicly traded before Intel bought the Israeli company in 2017 for $15.3 billion. At its IPO price of $21, Mobileye was valued at just $17 billion, the least profitable for Intel to date. The stock, trading under the ticker symbol MBLY, traded up to $27.85 on Wednesday.
Intel will retain control of Mobileye and own more than 750 million shares of Class B stock, which has 10 times more voting power than Class A stock. This was reported by the company October 18 he expected the offer to be between $18 and $20 per share.
The IPO raised $861 million, and Mobileye’s Nasdaq listing is part of Intel’s broader strategy to turn around its core semiconductor business, which has lagged behind competitors. AMD and Nvidia in recent years. As Intel embarks on the capital-intensive process of becoming a foundry for other chipmakers, it said it will use some of the proceeds from the Mobileye listing to build more chip factories.
However, Mobileye’s market cap is much lower than Intel’s waiting earlierthe latest sign that tech investors are cooling off on IPOs and readjusting their valuations from the bubble days of the past half-decade as interest rates rise and the economy slows.
Founded in 1999, Mobileye has partnered with Audi, BMW, Volkswagen, GM and Ford to develop advanced driving and safety features such as driver assistance and lane keeping using the company’s EyeQ camera, chips and software. Mobileye CEO Amnon Shashua said in the IPO filing that 50 companies are currently using the company’s technology in 800 vehicle models.
Input increased by 41% to $460 million in the second quarter. Net loss was reduced from $21 million to $7 million.
Class A shares will be purchased by investors in the IPO, and Intel expected there to be 46.26 million Class A shares, with the option to receive more shares if the underwriters decide to exercise their option to purchase additional shares.
Intel shares fell slightly on Wednesday and have lost about 47% this year, while the Nasdaq fell 29%.
— CNBC’s Keef Lesswing contributed to this report.
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