Mobileye IPO price above target range to raise nearly $1 billion, and most of it will go to Intel
Mobileye Global Inc. priced its initial public offering above its target range late Tuesday to raise nearly $1 billion, much of which will go to Intel Corp.
Mobileye valued the initial public offering at $21 late Tuesday, the company announced in a news release, after previously stating a target range of $18 to $20; The stock is expected to begin trading on Nasdaq under the symbol “MBLY” on Wednesday. Intel
INTC,
will sell at least 41 million shares of Mobileye for $861 million, and agree to concurrently sell $100 million to General Atlantic, which would result in the total raised at least $961 million.
Intel paid $15.3 billion to buy Mobileye in 2017, and is reportedly aiming for a valuation as high as $50 billion when it originally planned for this IPO, but would instead settle for an underlying valuation of around $16.7 billion. After a record year with more than 1,000 offerings in 2021, the IPO market has largely dried up by 2022.
Read: Mobileye IPO: 5 things to know about Intel’s autonomous driving sub
Underwriting banks – Intel listed two dozen underwriting firms, led by Goldman Sachs Group Inc.
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and Morgan Stanley
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– gain access to an additional 6.15 million shares for the overall split, which could push the total raised over $1 billion and make Mobileye the second-largest offering of the year. Only two offerings so far this year have raised at least $1 billion — private equity firm TPG Inc.
TPG,
raised exactly 1 billion dollars in Januaryand American International Group Inc.
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spinoff Corebridge Financial Inc.
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raised at least $1.68 billion in September.
Intel will receive the majority of the proceeds of the offering – after promising to ensure that Mobileye has $1 billion in cash and equivalents, the chipmaker will take the remainder of the proceeds to the company. own treasury. Wells Fargo analysts have calculated that Mobileye will need about $225 million to get there, leaving at least $736 million for Intel before fees and other expenses.
Intel will also maintain control of the company after its removal, holding Class B shares that will yield 10 votes per share while selling Class A shares at a rate of one vote per share. Intel will retain more than 99% of the voting rights and nearly 94% of the economic ownership of the company, and the Mobileye board is expected to include four members with ties to Intel, including the CEO. Pat Gelsinger serves as chairman of the board.
Read more: Intel filings for Mobileye IPO, creating share structure that puts chipmaker in control
Mobileye will continue to be led by founder Amnon Shashua, who served as chief executive officer before Intel acquired the company and held a leadership position when it was part of the Silicon Valley chipmaker. Shashua founded Mobileye in 1999 and made it a pioneer in autonomous driving technology and one of Israel’s most prominent technology companies.
Mobileye apply for initial public offering at the end of September, when executives still have hope in 30 billion dollar valuation.
