(Bloomberg) -- Mobileye Global Inc., the self-driving technology company spun off by Intel Corp., gained as much as 33% in its trading debut after raising $861 million in one of the few US initial public offerings to exceed its goals this year.
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The shares, which opened trading in New York Wednesday at $26.71 apiece, rose as high as $28.01 after selling for $21 in the IPO. They were trading at $27.75 at 11:45 a.m. in New York, giving the company a market value of about $22 billion.
Mobileye sold 41 million shares Tuesday after marketing them for $18 to $20, making the company only the fourth out of 199 in the US this year to price its IPO above the targeted range, according to data compiled by Bloomberg.
While Mobileye’s market value tops the $15.3 billion Intel paid for Mobileye in 2017, it’s still short of the $30 billion valuation the company had sought earlier, Bloomberg News has reported. In conjunction with the listing General Atlantic agreed to buy $100 million worth of shares in a private placement, according to Mobileye’s filings with the US Securities and Exchange Commission.
Last year’s record-high volumes for IPOs in the US and around the world have tanked amid market volatility, inflation fears and geopolitical risks, as well as a poor showing by companies that went public in 2021, which are down 23% on a weighted average basis.
IPO volume in the US has plummeted to $22.5 billion since Jan. 1, compared with $279 billion at this point in 2021, the data show.
Only two 2022 listings on US exchanges have topped $1 billion. Corebridge Financial Inc. raised $1.68 billion in September, while private equity firm TPG Inc.’s January listing brought in $1.1 billion. Last year, 45 companies raised $1 billion or more in IPOs on the New York Stock Exchange and Nasdaq, the data show.
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