Sep 30 (Reuters) – Mobileye, Intel Corp.’s self-propelled unit. (INTC.O), unveiled its filing for a U.S. IPO on Friday, testing support for a high-profile stock debut even as the new issue market has all but collapsed.
The global tech IPO market is in the midst of its worst drought in nearly two decades. U.S. stock market listings have raised just over $7 billion so far this year, according to data from Dealogic. Last year, traditional IPOs, excluding special purpose acquisition vehicles, raised a record $154 billion.
However, Mobileye’s IPO, which follows Porsche’s blockbuster debut in Europe, could be an early sign of improving investor sentiment.
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If Mobileye’s debut is well received, it could embolden other big names like Instacart, Reddit, and ServiceTitan, which delayed their IPOs earlier this year until the market improves.
In early September, Corebridge Financial Inc (CRBG.N), the life insurance and pensions division of AIG Inc, raised $1.68 billion in its biggest IPO of the year, defying market volatility and ending a seven-month lull in major listings. Continue reading
DESPITE THE VOLATILITY
Mobileye, which privately filed for its IPO earlier this year, reported first-half revenue of $854 million, up 21% from the prior-year period, according to its IPO filing. In 2021, Mobileye had sales of $1.4 billion.
Reuters was the first to report in April that Mobileye had hired investment banks Goldman Sachs Group Inc (GS.N) and Morgan Stanley to lead preparations for the self-driving car division’s IPO. Continue reading
In its filing on Friday, Mobileye confirmed that Goldman Sachs and Morgan Stanley are the lead underwriters.
Mobileye plans to list shares on the Nasdaq under the ticker “MBLY.”
Mobileye has yet to set a price range for its IPO, but Reuters has reported that the company could target a valuation of up to $50 billion for its stock sale. Continue reading
A source familiar with the matter said Friday that Mobileye could lower its IPO valuation estimate due to unfavorable market conditions.
Intel hasn’t disclosed the stake it will retain in the unit if it goes public, but the chip giant has previously said it would be a majority stake.
Mobileye’s listing is part of Intel’s broader strategy under Chief Executive Pat Gelsinger to transform its core business. Continue reading
Mobileye, an Israeli company that bought Intel for about $15.3 billion in 2017, uses a camera-based system with adaptive cruise control and lane change assist in driverless cars.
In addition to self-driving chips and software, Mobileye offers driver assistance and mapping technology that is in use today.
Mobileye, which counts BMW, Audi, Volkswagen, Nissan, Honda and General Motors among its customers, was a bright spot for Intel, which faces stiff competition from Nvidia Corp (NVDA.O) and Qualcomm Inc (QCOM) for chipmaking. O).
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Additional reporting by Bhanvi Satija and Niket Nishant in Bengaluru; Edited by Sriraj Kalluvila and Richard Chang
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