Intel's Mobileye prices IPO at $21.00, above expected range
Intel's (INTC) self-driving technology unit Mobileye (MBLY) has priced its initial public offering of 41 million shares of its Class A common stock at $21.00 per share, above its previously estimated $18.00 - $20.00 per share range, valuing unit at a market value of about $16.7 billion.
Trading commences today.
The offering Closing date is expected October 28, 2022.
Underwriters have a 30-day option to purchase up to an additional 6.15M common shares.
The significant portion of net proceeds of ~$0.8B will be used for repayment on a note owed to its parent company, Intel, and the remaining for working capital and general corporate purposes.
The self-driving unit will raise additional $100M through private placement of 4.76M common shares at the initial offering price.
Mobileye went public in 2014. It was acquired by Intel in 2017. Intel currently owns 100% of Mobileye shares and is expected to retain majority ownership following the completion of the IPO.
In December, some analysts speculated that Mobileye (MBLY) was worth $50B, but now it will be valued around $16.7B. For comparison purposes, Intel bought the company for roughly $15.3B in 2017.