Mobileye Global Inc. (Nasdaq: MBLY) controlling shareholder Intel Corp. (Nasdaq: INTC) has made a regulatory filing to sell 35 million shares in the Israeli advanced driving assistance systems (ADAS) company.
Since holding its Wall Street IPO in late 2022, Mobileye's share price has doubled in value and now Intel is cashing in to the tune of $1.4 billion in a secondary offering. Joint book-running managers Morgan Stanley and Goldman Sachs will have the option to buy an additional 5.25 million shares within 30 days, so that Intel could receive an additional $216 million.
Mobileye's share price closed down 2.73% last night on Wall Street at $42.37, giving a market cap of $34 billion. The share price is down a further 6.30% in premarket trading. Mobileye held its IPO in October 2022 at $21 per share, giving a market cap of $16.7 billion. Intel acquired Mobileye in 2017 for $15.3 billion.
After the secondary offering, Intel will be left with a 88.7% stake in Mobileye, or 88.1% if the underwriters exercise their options. As well as Intel, institutional investors such as Baillie Gifford, Fidelity and the Norwegian sovereign wealth fund have built positions in Mobileye, while cofounder and CEO Amnon Shashua holds shares worth $30.7 million.
In its first quarter results for 2023 published in April, the company reported revenue of $458 million, up 16% from the corresponding quarter of 2022. GAAP net profit was $79 million compared with a net loss of $60 million in the first quarter of 2022. Non-GAAP net profit was $115 million, down 4.2% from the first quarter of 2022.
Mobileye sees annual revenue growth of 12% with revenue of $2.065-2.114 billion. The company predicts an operational loss of $166-195 million. Adjusted operational profit is expected to be $548-577 million.
Published by Globes, Israel business news - en.globes.co.il - on June 6, 2023.
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