(Bloomberg) -- Mobileye Global Inc., the self-driving technology company owned by Intel Corp., is targeting a valuation of about $16 billion, far below its previous target.
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Intel had expected the initial public offering to value Mobileye at as much as $50 billion before trimming that to around $30 billion, Bloomberg News previously reported.
The company plans to sell 41 million shares for $18 to $20 each, raising $820 million according to a filing on Tuesday with the US Securities and Exchange Commission.
Despite the drop in valuation, the listing is set to be one of the year’s biggest IPOs. Amid heightened volatility and disappointing debut performances of last year’s listings. IPO volume in the US has plummeted to $22.3 billion this year, compared with $277 billion at this point in 2021, according to data compiled by Bloomberg.
Key Facts:
Intel will beneficially own all of the outstanding shares of Class B common stock representing about 99.4% of the voting power immediately following completion of the offering
Baillie Gifford and Norges Bank Investment Management, as cornerstone investors, have indicated interest in purchasing up to an aggregate of $330m shares of Class A common stock in this offering
CEO Amnon Shashua has indicated an interest in purchasing up to $10m shares of Class A common stock
Mobileye, founded in 1999 by Shashua, was acquired by Intel in 2017 in a $15.3 billion deal that took the company private, according to the prospectus.
Intel Chief Executive Officer Pat Gelsinger is seeking to capitalize on the Israel-based business, with a partial spinoff of its shares. The technology giant will have a controlling stake in Mobileye after the listing, according to the filing.
Mobileye, which makes chips for cameras and drive-assistance features, is prized asset as the car industry moves toward fully automated vehicles. As of July, it had $774 million of cash and cash equivalents. In the 12 months ended Dec. 25, it had a net loss of $75 million on revenue of $1.39 billion.
Mobileye will use the cash raised to toward net proceeds for working capital and general corporate purposes, as well as repaying a portion of debt owed to Intel.
Goldman Sachs Group Inc. and Morgan Stanley are leading the offering. Mobileye plans for its shares to trade on Nasdaq under the symbol MBLY, the same ticker it used when it went public the first time in 2014.
(Additional context throughout)
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