Intel’s Mobileye Price at IPO At $21.00, Above Expected Range
The underwriters have a 30-day call option to purchase an additional 6.15 million shares of common stock.
A significant portion of the ~$0.8 billion net proceeds will be used to repay its parent company, Intel, and the remainder for working capital and general corporate purposes.
The self-driving unit will raise an additional $100 million through a private placement of 4.76 million shares of common stock at an initial offering price.
Mobileye went public in 2014. It was acquired by Intel in 2017. Intel currently owns 100% of Mobileye and is expected to retain majority ownership upon completion of the IPO.
In December, some analysts speculated that Mobileye (MBLY) is worth $50 billion, but now it will be valued at around $16.7 billion. For comparison, Intel acquired the company for about $15.3 billion in 2017.