Mobileye Robotaxi (Company Pic)
After a few setbacks, Mobileye is finally holding its Initial Public Offering (IPO) with a $16.7 billion valuation. This is far short of the $50 billion that its parent company Intel originally expected. Mobileye raised $861 million from the IPO.
Mobileye will float 41,000,000 shares of its Class A common stock at an initial public offering price of $21.00 per share. The shares are expected to begin trading on the Nasdaq Global Select Market on October 26, 2022, under the symbol “MBLY,” and the offering is expected to close on October 28, 2022, subject to customary closing conditions. In addition, Mobileye has granted the underwriters a 30-day option to purchase up to an additional 6,150,000 shares of Class A common stock at the initial public offering price, less underwriting discounts and commissions.
The net proceeds from the offering to Mobileye, after deducting underwriting discounts and commissions and estimated offering expenses payable by Mobileye, are expected to be approximately $0.8 billion, excluding any exercise of the underwriters’ option to purchase additional shares. A significant portion of the net proceeds from this offering will be used for repayment on a note owed to Mobileye’s parent company, Intel Corporation, and Mobileye intends to use the remaining net proceeds for working capital and general corporate purposes.
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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.
In addition to the shares of Class A common stock sold in the public offering, Mobileye announced that General Atlantic will purchase 4,761,905 shares of Class A common stock in a private placement at a price per share equal to the initial public offering price, for gross proceeds of $100 million, subject to customary closing conditions. The sale of these shares will not be registered under the Securities Act of 1933, as amended. The closing of the initial public offering is not conditioned upon the closing of the private placement.
