Mobileye IPO: What to know
Intel's Mobileye shares will trade under the ticker symbol MBLY
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Shares of Intel Corporation's Mobileye surged following its first day of trading on the Nasdaq Wednesday under the ticker symbol MBLY.
The autonomous hardware and software unit's initial public offering is selling 41 million Class A shares at $21 per share, above its initial expected offering range of $18 to $20 per share.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| INTC | INTEL CORP. | 24.35 | -0.68 | -2.72% |
| MBLY | MOBILEYE GLOBAL INC | 14.99 | -0.50 | -3.23% |
Mobileye's IPO raised $861 million valuing the company at $16.7 billion, well below the $50 billion valuation that was initially expected when Intel unveiled plans for the listing last year.
A significant portion of the IPO's net proceeds will be used to repay a note owed to Intel, while the remainder will be used for working capital and general corporate purposes.
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Mobileye will have two classes of common stock following the IPO, according to an Oct. 18 regulatory filing. Each share of Class A stock will be entitled to one vote, while each share of Class B will be entitled to ten votes and will be convertible at any time into one share of Class A stock.
Intel will beneficially own all outstanding shares of Mobileye's Class B common stock, representing around 99.4% voting power. The tech giant expects Mobileye to have approximately 46.26 million outstanding Class A shares and approximately 750 million outstanding Class B shares.
In this photo illustration, the Mobileye logo is displayed on a smartphone and in the background. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)
A combination of pictures taken in Jerusalem on March 13, 2017, shows the logos of US computer chip giant Intel (top) and Israeli car tech firm Mobileye. (THOMAS COEX/AFP via Getty Images)
In addition to Class A shares being made available to the public, General Atlantic LP has agreed to buy $100 million worth of Mobileye's Class A common stock, or 4.76 million shares, at the $21 per share IPO price.
Mobileye is selling only a 5% stake in itself, less than the typical 10% to 20% stake for most IPOs. This limits the financial hit it will take as a result of its lower valuation.
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Mobileye was founded in Israel in 1999 and first went public in 2014 at a roughly $5 billion valuation. The company was acquired by Intel in 2017 for $15.3 billion.
Since its founding, Mobileye has experience significant growth, with revenue climbing from $879 million in 2019 to $1.4 billion in 2021 and its net loss narrowing from $328 million in 2019 to $75 million in 2021. For the six-month period ending July 2, 2022, Mobileye reported a net loss of $67 million and revenue of $854 million.
A general view of a Mobileye autonomous driving test vehicle, at the Mobileye headquarters in Jerusalem, May 15, 2018. Picture taken May 15, 2018. REUTERS/Ronen Zvulun
FILE PHOTO: Mobileye driverless car logo is seen on a vehicle at the Nasdaq Market site in New York, U.S., July 20, 2021. REUTERS/Jeenah Moon
As of Oct. 1, Mobileye's solutions have been installed in approximately 800 vehicle models and its System-on-Chips have been deployed in over 125 million vehicles.
The company, which is actively working with more than 50 original equipment manufacturers worldwide, anticipates its autonomous driving solutions will be deployed in an additional 270 million vehicles by 2030.
Reuters contributed to this report.