Mobileye is pricing the IPO above target to raise nearly $1 billion, and most of that will go to Intel

Mobileye Global Inc. revalued its IPO late Tuesday higher than planned to raise nearly $1 billion, most of it to Intel Corp. will go.

Mobileye valued its IPO at $21 late Tuesday, the company said in a press release, after previously stating a target range of $18 to $20. The shares are expected to trade on the Nasdaq on Wednesday under the ticker symbol “MBLY.” Intel INTC, +0.85% will sell at least 41 million shares of Mobileye, raising $861 million, and also agreed to a concurrent sale of $100 million of shares to General Atlantic, bringing the Total revenue would be at least $961 million.

Intel paid $15.3 billion to acquire Mobileye in 2017 and reportedly aimed for a valuation of up to $50 billion when originally planning that IPO, but will instead settle for a base valuation of around $16.7 billion settle for US dollars. After a record year with over 1,000 offerings in 2021, the IPO market has largely dried up in 2022.

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Underwriters — Intel listed two dozen underwriters led by Goldman Sachs Group Inc. GS, +1.13% and Morgan Stanley MS, +1.36% — have access to an additional 6.15 million shares for over-allotments, making up the total could raise over $1 billion, making Mobileye the second-largest offering of the year. So far this year, only two deals have raised at least $1 billion – private equity firm TPG Inc. TPG, +4.21%, raised exactly $1 billion in January, and American International Group Inc. AIG, -0.11% Spin-off Corebridge Financial Inc. CRBG , +1.36% raised at least $1.68 billion in September.

Intel will receive the bulk of the proceeds from the offering — after promising to ensure Mobileye has $1 billion in cash and equivalents, the chipmaker will take the remainder of the proceeds into its own coffers. Wells Fargo analysts have calculated that Mobileye will need about $225 million to reach that level, leaving at least $736 million for Intel before fees and other costs.

Intel will retain control of the company after the spin-off and will retain Class B shares, which carry 10 votes for each share, while selling Class A shares, which carry one vote per share. Intel will retain more than 99% voting rights and nearly 94% beneficial ownership of the company, and Mobileye’s board of directors is expected to include four members with Intel ties, including chief executive Pat Gelsinger, who will serve as chairman of the board.

Also Read: Intel Files Mobileye IPO, Creates Share Structure Keeping Chipmaker in Control

Mobileye will continue to be led by founder Amnon Shashua, who served as chief executive prior to Intel’s acquisition of the company and remained at the helm while it was part of the Silicon Valley chipmaker. Shashua founded Mobileye in 1999, making it a pioneer in automated driving technology and one of Israel’s best-known technology companies.

Mobileye filed for an IPO in late September when executives were reportedly hoping for a $30 billion valuation.