Mobileye Global, Intel's self-driving vehicle technology business, announced terms for its IPO on Tuesday.
The Jerusalem, Israel-based company plans to raise $779 million by offering 41 million shares at a price range of $18 to $20. Certain cornerstone investors and CEO Amnon Shashua intend to purchase an aggregate $340 million worth of shares in the offering (44% of the deal). The company also plans to raise $100 million in a concurrent private placement to General Atlantic. At the midpoint of the proposed range, Mobileye Global would command a fully diluted market value of $15.4 billion.
In light of current market conditions, Mobileye is floating about 5% of its basic shares outstanding, well below the typical 15%. The company's proposed valuation is also below recent news reports: Bloomberg reported last month that the company was targeting a valuation as high as $30 billion. At a proposed market cap of $15 billion, Mobileye is being pitched at roughly the same valuation that Intel paid when it bought the company in March 2017.
Mobileye believes that it has pioneered advanced driver assistance systems (ADAS) technology, continuously expanding the scope of its ADAS offerings while leading the evolution to autonomous driving solutions. The company's portfolio of solutions is built upon a comprehensive suite of purpose-built software and hardware technologies, and include its family of EyeQ System-on-Chips (SoCs), which were first launched in 2007. In the 9mo22, Mobileye shipped approximately 24.0 million of its SoCs (+13% y/y). It currently ships a variety of ADAS solutions to 13 of the 15 largest automakers in the world, as well as many smaller OEMs. As of October 1, 2022, the company's solutions had been installed in approximately 800 vehicle models, and its SoCs had been deployed in over 125 million vehicles.
Mobileye Global was founded in 1999 and booked $1.5 billion in revenue for the 12 months ended July 2, 2022. It plans to list on the Nasdaq under the symbol MBLY. Goldman Sachs, Morgan Stanley, Evercore ISI, Barclays, Citi, BofA Securities, RBC Capital Markets, Mizuho Securities, WR Securities, Nomura Securities, and BNP Paribas are the joint bookrunners on the deal. It is expected to price during the week of October 24, 2022.
