Despite the fact that the new issue market has all but collapsed, Mobileye, the standalone company of Intel Corp.
The tech IPO market is currently experiencing its worst dry spell in nearly two decades. According to data from Dealogic, listings in the United States have raised just over $7 billion so far this year. A record $154 billion was raised by conventional IPOs last year, excluding special purpose acquisition companies.
However, Mobileye’s IPO, which followed Porsche’s huge success in Europe, may be a precursor to a rise in investor sentiment.
If Mobileye’s debut is received positively, other well-known companies like Instacart, Reddit and ServiceTitan, which delayed their IPOs earlier this year until the market improves, could be encouraged to move on. the front.
AIG Inc.’s life insurance and pension company Corebridge Financial Inc. raised $1.68 billion in the biggest IPO of the year earlier in September, defying market turmoil and ending a seven-month hiatus in major quotes.
According to its IPO filing, Mobileye posted first-half sales of $854 million, up 21% from the same period last year. Mobileye confidentially filed for its IPO earlier this year. Mobileye reported revenue of $1.4 billion for 2021.
The hiring of investment banks Goldman Sachs Group Inc. and Morgan Stanley by Mobileye to oversee preparations for the unit was originally reported by Reuters in April.
Mobileye said in its filing on Friday that Morgan Stanley and Goldman Sachs were the top underwriters.
Mobileye’s shares will be listed on the Nasdaq under the symbol “MBLY”.
Although Mobileye has yet to set a price range for its IPO, Reuters has speculated that the company may be targeting a $50 billion valuation for the sale of its shares.
According to a source familiar with the situation, Mobileye may reduce the estimated valuation of its IPO due to unfavorable market conditions.
When the entity goes public, Intel will retain a stake, which the chipmaker did not specify but previously said it would be a majority stake.
Mobileye’s IPO is one component of Intel’s broader turnaround strategy for its core company led by Chief Executive Pat Gelsinger.
A camera-based system with adaptive cruise control and lane change assist is used in driverless cars by Mobileye, an Israeli startup that Intel acquired in 2017 for around $15.3 billion.
Mobileye offers commonly used driver assistance and mapping technologies in addition to chips and self-driving software.
A shining light for Intel has been Mobileye, which has customers like BMW, Audi, Volkswagen, Nissan, Honda and General Motors. Qualcomm Inc. and Nvidia Corp. are tough competitors for Intel in the chip manufacturing industry.
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