Mobileye files for $700m NYSE secondary offering

Ziv Aviram and Prof. Amnon Shashua
Ziv Aviram and Prof. Amnon Shashua

Each of the two founders will sell shares worth $100 million in the driving assistance systems company's offer for sale.

Camera-based driving assistance systems developer Mobileye(NYSE: MBLY) has filed with the US Securities and Exchange Commission (SEC) for its secondary offering. In a massive offer to sale by shareholders, the Jerusalem-based company's parties at interest are selling 14.5 million shares. At the company's closing price yesterday of $41.63 that would be an offering of $603.6 million and "green show" options bring that amount up to $694.2 million.

Mobileye held its IPO on Wall Street last August for $25 per share. The share price soared to $57.70 at its peak but has since fallen back to $41.63, and in trading this morning slipped 1.35% to $41.07, giving a market cap of $8.84 billion.

Mobileye has developed a system that issues warnings of road perils. The system is based on a mono-camera installed beneath the car's rearview mirror. The system issues a sound warning of potentially dangerous situations, such as moving out of the lane, tailgating, and getting too close to pedestrians and bicycle riders. The product is being sold to equipment manufacturers, who market it to auto manufacturers for integration into the cars they offer to the public at large.

The company expects revenue of $218.3 million in 2015.

The prospectus filed with the SEC details, which shareholders are now taking their profit. The two founders, chairman and CTO Prof. Amnon Shashua and president and CEO Ziv Aviram, will each sell shares worth nearly $100 million. In the IPO each of the founders sold shares worth $46 million. In contrast, Dr. Shmuel Harlap chairman and controlling shareholder of Colmobil, Israeli's leading auto importer, who owns nearly as many shares as the founder, is not selling any shares, as he told "Globes" in a recent interview. But Delek Automotive Systems Ltd. (TASE: DLEA) owner Gil Agmon is selling shares worth $54 million.

Published by Globes [online], Israel business news - www.globes-online.com - on March 16, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Ziv Aviram and Prof. Amnon Shashua
Ziv Aviram and Prof. Amnon Shashua
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