Mobileye IPO valuation $3.6-4b

Mobileye
Mobileye

The collision avoidance solutions company will be traded on NYSE under the ticker MBLY.

Collision avoidance solutions developer Mobileye is embarking on an IPO at a valuation of around $3.8 billion after money, according to a draft prospectus filed with the US Securities and Exchange Commission (SEC) this morning (US time). Earlier estimates were of a valuation of $3.5-5 billion, so that the actual valuation for the IPO is at the lower end of the estimates.

Mobileye was founded fifteen years ago. It has developed a camera-based system mounted in vehicles that reads the road ahead and is designed to help drivers avoid accidents.

According to the updated prospectus, the company will offer 8.325 million shares at a price of $17-19 per share, to raise $141.5-158.2 million ($149.9 million at the average price). Existing shareholders in the company will sell 19.425 million shares for $330.2-369.1 million ($349.6 million at the average price). The total number of shares being offered to the public is 27.75 million, valued at a total of some $500 million at a company valuation of $3.6-4 billion. The shareholders are also giving the underwriters a Green Shoe option whereby they can sell additional shares to the tune of $70.7-79.1 million.

After the offering, which will probably take place within two weeks, the stock will start to be traded under the ticker MBLY on the New York Stock exchange. Goldman Sachs and Morgan Stanley are lead underwriters in the offering. Deutsche Bank Securities Inc. is a joint book-running manager and Barclays Capital Inc. and Citigroup are also acting as book-running managers. Wells Fargo Securities, Robert W. Baird & Co., Incorporated, William Blair & Company and Raymond James & Associates, Inc. are acting as co-managers. The underwriters will share a commission totaling $35 million.

Besides the largest shareholder, Goldman Sachs, which will sell shares to the tune of some $79.3 million at the average price, the two largest sellers are the company's founders, chairman Amnon Shashua and CEO Ziv Aviram, each of whom will pocket about $33 million (NIS 114 million).

Mobileye's first quarter revenue was $35.6 million, 204% more than in the first quarter of 2013. Total revenue for 2013 was $81.2 million, and so the results for the first quarter of this year indicate that Mobileye could double its revenue in 2014 in comparison with 2103.

On a GAAP basis, Mobileye made an operating loss of $15.5 million in the first quarter of this year, compared with an operating loss of $3.3 million in the first quarter of 2013. The loss mainly arose from recognition of stock-based compensation. The net loss in the first quarter of this year was $19.6 million, compared with $2.6 million in the first quarter of 2013. On a non-GAAP basis, excluding this expense, Mobileye made a net profit of $12.6 million in the first quarter of this year, compared with $1.9 million in the first quarter of 2013.

Published by Globes [online], Israel business news - www.globes-online.com - on July 22, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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