Intel's Israeli self-driving cars and advanced driver-assistance systems (ADAS) unit Mobileye has set terms for its upcoming IPO. The company has filed a prospectus to sell 41 million new shares, within a price range of $18-20, at a company valuation of $14.3-16 billion, and raise between $731 million and $820 million. This will be the biggest IPO on Wall Street this year but well below the $50 billion valuation, Mobileye had been aiming for last year.
The underwriters will be given an option to buy shares, which at the mid-point of the price target range, would be worth $117 million. Mobileye also reports that growth equity investor General Atlantic will inject an additional $100 million into the company for shares according to the share price at the time of the flotation. These shares will be blocked for 180 days from the IPO. About 2.05 million shares, representing about 5% of the shares issued, will be allocated by the company to managers, directors and executives in Intel.
"The Wall Street Journal" reported this morning that the Mobileye IPO is planned for next week on October 26.
Mobileye was founded in 1999 by Prof. Amnon Shashua, who serves as its CEO, and Ziv Aviram. In 2014, Mobileye was floated on the New York Stock Exchange at a valuation of $5.3 billion, and in March 2017, when its market cap stood at $10.5 billion, it was acquired by Intel for $15 billion.
A significant amount of the money raised will form part of a $3.5 billion payment to Intel, as a kind of dividend agreed between the companies, after a dividend of $336 million was paid to Intel by Mobileye earlier in the year. According to the prospectus, $1 billion will remain in Mobileye's coffers (ahead of the offering, Mobileye has $774 million in cash).
Mobileye's net loss narrowed from $328 million in 2019 to $75 million in 2021. In the prospectus, Shashua said that 50 companies currently use Mobileye's technology in 800 car models. The prospectus also said that Mobileye recent acquired from Intel the full holding in Moovit, the Israeli, which was bought by Intel two years ago for $900 million. This means that Moovit will be part of Mobileye's IPO.
Published by Globes, Israel business news - en.globes.co.il - on October 18, 2022.
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