Intel files Mobileye’s IPO and creates a stock structure that keeps it in control

After nearly a year of waiting, Mobileye is on the highway to Wall Street.

Intel Corp. INTC,
Mobileye Global Inc., which is owned by Mobileye Global Inc., launched its IPO initiative in a filing with the Securities and Exchange Commission late Friday, leaving the size of the offering empty for now in what is expected to be one of the largest IPOs of the year will be.

Intel executives were targeting mid-2022 late last year and confidentially filed the IPO of its self-driving car division with the SEC in March, but the IPO market has been dry amid a decline in shares, particularly those that went public in 2021.

Mobileye plans to trade Class A common stock on the Nasdaq exchange under the symbol “MBLY,” the same symbol the company had before Intel acquired Mobileye in 2017 for $15.3 billion in cash. While Intel sells Mobileye shares, Intel will retain official control of the company and retain Class B shares with 10 votes each, while Class A shares will be sold with only one vote.

Mobileye also plans to have four Intel-affiliated members on its board of directors, including Chief Executive Pat Gelsinger, who serves as Mobileye’s chairman of the board.

Intel will also be paid from the offering: Mobileye has issued a $3.5 billion dividend note to Intel and expects to repay it with proceeds from the sale filing; There was an initial payment of $336 million, leaving Intel still owed more than $3 billion. Earlier reports suggested Intel would target a valuation of $30 billion for Mobileye in its IPO, though Friday’s initial filing did not include target prices for the shares.

However, the filing contained financial information: Mobileye reported 2021 sales of $1.39 billion, well ahead of Nvidia Corp. NVDA,
which reported fiscal year sales of $566 million in January from the sale of auto chips. Mobileye reported a loss of $70 million last year, compared to a loss of $196 million in 2020 and $328 million in 2019. Revenue in the first half of this year reached $854 million dollars and was up 41% year over year in the second quarter.

The filing lists a whopping 24 underwriters for the deal, including Goldman Sachs, Morgan Stanley, Evercore ISI, Barclays, Citigroup and B of A Securities.

Intel shares were up 0.5% after the close on Friday after falling 2.3% in the regular session to close at $25.77. Intel files Mobileye’s IPO and creates a stock structure that keeps it in control

Brian Lowry

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