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Intel Corporation’s Mobileye, which makes autonomous self-driving hardware and software, will make its debut on Nasdaq Wednesday and will trade under the ticker symbol MBLY.
The IPO of the autonomous self-driving hardware and software unit sells 41 million Class A shares at $21 per share, ahead of the expected offering range, and will test the previously weak IPO market.
| ticker | security | Last | change | change % |
|---|---|---|---|---|
| INTC | INTEL CORP. | 27.41 | +0.23 | +0.85% |
| MBLY | MOBILEYE GLOBAL INC | n / A | n / A | n / A% |
Mobileye’s IPO raised $861 million and valued the company at $16.7 billion, well below the $50 billion valuation originally expected when Intel unveiled plans for the listing last year .
A significant portion of the net proceeds from the IPO will be used to repay a debt obligation to Intel, while the remainder will be used for working capital and general corporate purposes.
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According to an Oct. 18 listing, Mobileye will have two classes of common stock after the IPO. Each Class A share carries one vote, while each Class B share carries ten votes and is convertible into Class A shares at any time.
Intel will own all outstanding shares of Mobileye’s Class B common stock, representing approximately 99.4% of the voting rights. The tech giant anticipates that Mobileye will have approximately 46.26 million Class A shares outstanding and approximately 750 million Class B shares outstanding.
In addition to the Class A shares being disclosed to the public, General Atlantic LP has agreed to purchase Mobileye’s Class A common stock for $100 million, or 4.76 million shares at an IPO price of $21 per share .
Mobileye only sells a 5% stake to itself, less than the typical 10% to 20% stake in most IPOs. This limits the financial damage it will suffer due to its lower rating.
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Founded in Israel in 1999, Mobileye first went public in 2014 with a valuation of around $5 billion. The company was acquired by Intel for $15.3 billion in 2017.
Since its inception, Mobileye has experienced significant growth, with revenue increasing from $879 million in 2019 to $1.4 billion in 2021 and net loss increasing to 75 million from $328 million in 2019 million US dollars in 2021. For the six-month period ended July 2, 2022 , Mobileye reported a net loss of $67 million and revenue of $854 million.
As of October 1, Mobileye’s solutions have been installed in approximately 800 vehicle models and its system-on-chips have been deployed in over 125 million vehicles.
The company, which actively works with more than 50 original equipment manufacturers worldwide, expects its autonomous driving solutions to be deployed in an additional 270 million vehicles by 2030.
Reuters contributed to this report.
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