Mobilai is moving towards the largest IPO ever of an Israeli company on Wall Street. Intel Reported today (Monday) that the company, which it acquired in March 2017 for over $ 15 billion, submitted a confidential prospectus ahead of an initial public offering in the United States.
The company did not provide further details on the date of the IPO or the value raised, but according to past estimates provided by Reuters associates, it will be worth more than $ 50 billion. This is ten times higher than the value at which it traded in its previous round on Wall Street, in the middle of the previous decade.
The confidential prospectus was submitted despite the dismal situation in the capital market and forecasts of an economic crisis following inflation and rising world commodity prices. Mobilai is building on a growing growth forecast for chips, and in particular for automotive chips, which are gradually rising. After a contraction in the car chip market between 2018 and 2020, research firm IHS Markit predicts that sales are expected to double by 2026.
Another reason for choosing an IPO is Intel’s faltering stock. Despite the purchase of Tower Last February, the company’s share continues to shuffle, having fallen by about 20% since the beginning of the year, and in the last five years has recorded a rise of only 30%.
At Mobilai, which is an independent and autonomous unit within Intel, it is likely that the company’s growth, along with market expectations, will be higher than Intel’s in the coming years, which will also allow employees to enjoy higher quality stock rewards.
In recent months, the smart transportation company Via and the compression technology company Beimer have also submitted confidential prospectuses in preparation for an IPO in New York. Despite this, there is a long distance between the submission of a confidential prospectus and the intention to actually issue it. As part of the confidential prospectus, companies are examining market access to them. They do not undertake as to the quantity of shares to be sold, as to their value or as to the date of issue.
Annual growth rate of almost 40%
At the CES electronics show last January, it seemed that Mobilai’s tactic of gaining support and trust from huge funds and conservative and solid investment houses would “draw value” from several different areas of the “smart car” world and many young start-ups – and try to convince investors. Taller than its parts and there are no size advantages.
In the latest reports released by Intel, Mobilai showed a steady increase in sales in the fourth quarter of 2021, with revenue of $ 1.4 billion (7% growth in quarterly revenue compared to the same quarter last year).
Mobilai currently controls about 80% of the global market for ADAS (Active Vehicle Safety Systems) systems for the low levels of autonomy, which is also its only source of revenue.
The company consistently wins dozens of strategic contracts in the automotive industry every year and its annual growth rate of revenue from this field stands at about 39%.