Israel’s Mobileye N.V., a global designer and developer of camera-based Advanced Driver Assistance Systems, announced that it has filed a registration statement for a secondary public offering. The offering will consist of ordinary shares offered by shareholders who obtained their shares prior to the Company’s IPO.
The announcement is not surprising considering that just last July Mobileye held its IPO in New York and raised $1 billion for a market cap of $5.3 billion making it the most successful IPO in Israeli corporate history. But since then its shares have lost 37% of their value. Its market cap fell by $4.8 billion to a total of only $8 billion after reaching a high of $12.8 billion.
After opening at only $25, Mobileye’s stock reached a high of $60.28 last October, more than doubling in only 4 months. But the stock is still trading well above 50% more than its IPO price at above $37 since it balanced out.
The Company said that it is conducting the offering to provide these shareholders with an organized liquidity event that is intended to contribute to maintaining an orderly market for the Company’s ordinary shares. The Company expects to commence the offering only after it has issued its audited 2014 financial statements. The actual number of shares to be offered in the proposed secondary offering will be determined based upon selling shareholder interest and market demand. The Company will not receive any proceeds from the offering.
Goldman, Sachs & Co. and Morgan Stanley & Co. LLC are acting as lead book-running managers for the proposed offering.
Mobileye boasts that its technology keeps passengers safer on the roads, reduces the risks of traffic accidents, saves lives and has the potential to revolutionize the driving experience by enabling autonomous driving. The company says that its proprietary software algorithms and EyeQ chips perform detailed interpretations of the visual field in order to anticipate possible collisions with other vehicles, pedestrians, cyclists, animals, debris and other obstacles. Mobileye’s products are also able to detect roadway markings such as lanes, road boundaries, barriers and similar items, as well as to identify and read traffic signs and traffic lights. These products are integrated into car models from 21 global automakers including BMW, Ford, General Motors, Nissan and Volvo.