Intel's Israeli self-driving cars and advanced driver-assistance systems (ADAS) unit Mobileye is postponing its planned Wall Street IPO, due to the turmoil on the US stock market. Mobileye CEO Amnon Shashua has sent an internal letter to the company's employees, which has been seen by "Globes," informing them of the postponement.
In the letter, Shashua wrote, "The problem today with the difficult market conditions is not that the valuation would be lower but the lack of stability on the markets."
Shashua said that the lack of stability could detrimentally influence the results of the IPO, both on the day of the offering, and subsequently. He added, "We still hope that the offering will take place in 2022 and meanwhile the company is prospering on all fronts and the future seems more promising than ever."
Mobileye declined to comment on the report.
Intel announced last December that it was planning an IPO for mid-2022 although Intel would retain a substantial holding in the company. Market sources estimated that Mobileye's IPO would be at a company valuation of about $50 billion.
In April, despite the worsening market conditions, Mobileye continued its preparations for the IPO by filing confidentially with the US Securities and Exchange Commission (SEC) and appointing Goldman Sachs and Morgan Stanley to lead the offering. In May, sources at the company still insisted that the IPO was moving ahead on track but further declines, especially in the tech sector, have now persuaded Mobileye to delay the offering.
Published by Globes, Israel business news - en.globes.co.il - on July 10, 2022.
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