Intel's Mobileye Plans to Offer 41 Million Shares in IPO at $18-$21 Each
October 18 2022 - 7:41AM
Dow Jones News
By Robb M. Stewart
Intel Corp.'s self-driving-car unit, Mobileye Global Inc.,
expects a market valuation of roughly $15 billion at the projected
pricing midpoint of its initial public offering.
In a prospectus filed with regulators, Mobileye said it plans to
offer 41 million class A shares at a projected price of $18 to $21
apiece. The underwriters of the IPO have a 30-day option to up to
about 6.2 million additional shares.
Cornerstone investors Baillie Gifford and Norges Bank Investment
Management have each indicated an interest in buying up to a total
of $330 million of the A shares at the IPO price, and company Chief
Executive Officer Amnon Shashua indicated an interest in purchasing
up to $10 million of the shares, Mobileye said.
General Atlantic LP has agreed to buy $100 million of Mobileye's
A shares at the offering price or about 5.3 million shares at an
assumed price of $19 a share.
After the IPO, the company said it expects to have about
outstanding 46.3 million A shares.
At the expected $19 a share midpoint of the IPO's pricing,
Mobileye said it expects net proceeds from the offering of about
$800 million, or $900 million if the underwriters' option is
exercised in full.
Earlier, The Wall Street Journal reported that Mobileye, which
was originally expected to land a roughly $50 billion valuation,
was set to target one that is under $20 billion and sell a smaller
number of shares than originally planned.
Intel Chief Executive Pat Gelsinger has said that listing
Mobileye would give the self-driving-car unit a higher profile and
attract more business. He has also said Intel doesn't need the
money Mobileye's IPO would generate.
Intel will retain a large stake in Mobileye, including all of
the class B shares Mobileye plans to issue, with each B share
having voting rights equivalent to 10 A shares. Immediately
following the completion of the offering, Intel's hold on the B
shares is expected to represent a little over 99% of the voting
power, according to the prospectus.
The company, which recorded revenue of about $1.4 billion in
2021, said it has applied to list the A shares on Nasdaq under the
symbol MBLY.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
October 18, 2022 07:26 ET (11:26 GMT)
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