Mobileye Global Inc. (Nasdaq: MBLY) controlling shareholder Intel Corp. (Nasdaq: INTC) has sold 35 million shares in the Israeli advanced driving assistance systems (ADAS) company. The shares in the secondary offering were priced at $42 per share, fetching $1.6 billion in total for Intel. Mobileye's share price closed on Wall Street last night up 2.84% at $43.52, giving a market cap of $35.062 billion.
Since holding its Wall Street IPO in October 2022, Mobileye's share price has doubled in value. During the IPO, Intel did not sell any shares but the prospectus included a commitment by Mobileye to pay Intel a $3.5 billion dividend by 2025 and most of the money raised by the flotation was designated for this payment.
After the sale of shares in the secondary offering, Intel is left with a 88% stake in Mobileye. Joint book-running managers Morgan Stanley and Goldman Sachs have the option to buy an additional 5.25 million shares within 30 days, so that Intel could receive an additional $243 million and Intel's stake in Mobileye will fall accordingly if the option is exercised.
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.
Published by Globes, Israel business news - en.globes.co.il - on June 8, 2023.
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