This is after the company priced the IPO at $21 per share instead of $18-20 * The proceeds of approximately $1 billion will help Intel in its quest to build manufacturing plants for external entities * As you may recall, Intel purchased Mobileye in 2017 for $15.3 billion
Mobileye priced its initial public offering at $21 late Tuesday, the company announced in a press release, after previously stating a target range of $18 to $20; The shares are expected to begin trading on Nasdaq under the symbol “MBLY” today (Wednesday). Intel will sell at least 41 million shares of Mobileye, worth $861 million, and at the same time will sell shares to General Atlantic for $100 million, which will make the total The raisings to at least 961 million dollars.
Intel purchased Mobileye in 2017 for $15.3 billion and then invested another billion dollars in the acquisition of Mobit, an Israeli company in the field of transportation planning, which it recently transferred to Mobileye.
Intel reportedly aimed for a valuation of up to $50 billion for Mobileye when it originally planned the IPO, but instead will settle for a base valuation of about $16.7 billion. After a record year with more than 1,000 IPOs in 2021, the IPO market has largely dried up in 2022.
Intel registered over twenty underwriters led by Goldman Sachs and Morgan Stanley. Underwriters have access to an additional 6.15 million shares, which could push the total raised above $1 billion and make Mobileye’s second-largest IPO this year.
Intel will receive the bulk of the proceeds from the offering – after promising to make sure that Mobilay has a billion dollars in cash and equivalent, the chip maker will take the rest of the proceeds to its coffers.
Intel will also retain control of Mobileye after the IPO, and will retain Class B shares that will give ten votes for each share compared to Class A shares. Intel will retain more than 99% of the voting power and nearly 94% of the economic ownership of the company, and Mobileye’s board of directors is expected to include four members with Connections to Intel, including CEO Pat Gelsinger who serves as chairman of the board.
The founder, Prof. Amnon Shashua, who served as CEO before Intel purchased the company and remained at its head while it was part of Intel, will continue to manage it even now. Shashua founded Mobileye in 1999 and made it a pioneer in the field of automated driving technology and one of the most prominent technology companies in Israel.