Arbe Robotics, an Israeli startup that offers a 4D Radar solution for automobiles, is ready for its initial public offering IPO on the NASDAQ. Arbe has completed its SPAC merger with Industrial Tech and will begin trading tomorrow, Friday, under the ARBE ticker. The company expects to come away with a $525 million valuation.
Investopedia explains that a special purpose acquisition company (SPAC) is a company with no commercial operations that is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing company. Also known as “blank check companies,” SPACs have been around for decades. In recent years, they’ve become more popular, attracting big-name underwriters and investors and raising a record amount of IPO money in 2019.
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Unfortunately for Arbe, this is much less than the $723 million valuation that it reportedly expected to achieve when it first announced plans for the SPAC deal back in March. It is also expected to bring in $177 million from the deal. But now the word is that Arbe will only raise $118 million. This sum includes $18 million from Industrial Tech and $100 million in a private placement from investors including Mellanox founder and former CEO Eyal Waldman.
Back in March, it was reported that Arbe expected to list its stock for $10 a share. But the company’s latest announcement did not specify a stock price.
Founded in 2015 by CEO Kobi Marenko, CTO Dr. Noam Arkind and COO Oz Fixman, Arbe Robotic offers driver-assist systems and develops fully-automated driving tech. Arbe boasts that it delivers the first and only available long-range, 4D Imaging Radar, with industry leading performance and an unparalleled cost advantage. Its 4D Imaging Radar, says the company, is suitable for every level of vehicle autonomy, and is a vital sensor for Level 2+ and higher, with significantly superior resolution to other competing radar solutions.
Arbe’s also declares that its proprietary chipset has the largest channel array count in the industry with 48 receiving and 48 transmitting RF channels, a dedicated processor chip, and AI-based post-processing. The production-ready and affordable 4D Imaging Radar chipset solution, executes in the most challenging corner cases and is dependable in practically all environmental conditions.
Big thank you to ITAC stockholders, who approved Arbe’s business combination. The combination completion is scheduled for Thursday.
Details about these exciting developments, here:
https://t.co/GW57FqxV5s $ITAC -> $ARBE pic.twitter.com/YomEFPOdAF
— Arbe (@Arbe_Robotics) October 6, 2021
Kobi Marenko said, “Becoming a publicly traded company extends our first mover advantage and market leading position as we continue to spearhead a radar revolution. We continue to see strong customer uptake in our chipset as they recognize the superior capabilities of our products and significant cost advantages, and we expect that momentum to carry forward in the years ahead. The completion of the merger will help us accomplish our mission by enhancing our capital structure to fuel our product innovation process and accelerate our go-to-market strategy.”