Mobileye AV in New York City Trial (Company Pic)
Mobileye, the Israeli company that develops autonomous driving and driver-assist technologies and is owned by Intel, has once again been forced to lower its valuation expectations for the company’s upcoming Initial Public Offering (IPO). The expected valuation has now dropped down to just $16 billion, from a $30 billion expectation just a few weeks ago. The new figure was provided by the company in a regulatory filing for the IPO that it made with the SEC.
According to a report made by The Wall Street Journal, in its filing for the Mobileye IPO Intel plans to offer 41 million shares of common stock priced between $18 and $20 per share. The company hopes to bring in up to $820 million in new funds from the offering, if all goes according to plan.
Mobileye originally anticipated a valuation of $50 billion from its IPO. But due to the worldwide crisis in the markets, that figure has reportedly dropped to $30 billion. It was for that reason that Intel chose in July to delay the IPO.
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At the time, Mobileye Founder and CEO Amnon Shashua explained to the company’s employees in a letter, “The issue is the ‘market condition.’ I do not need to tell you about the status of the stock market – you all see it for yourselves. The problem with the ‘bad market condition’ is not valuation but stability.”
It was in March that Mobileye first revealed plans for what would, in effect, be the company’s second IPO. In 2014 the company held its first IPO on the NYSE, raising about $1 billion at a market cap of $5.3billion. At the time this made it the most successful Israeli IPO of all time.
In 2017, Intel bought out the company for $15.3billion.
Founded in 1999, Mobileye offers autonomous driving and driver-assist technologies, harnessing “world-renowned expertise in computer vision, machine learning, mapping, and data analysis.” The idea is simple: warning systems alert drivers of a possible collision. Eventually, the idea is to have entirely self-driving cars that can avoid accidents entirely.
