Intel Unit Mobileye IPO Proposal: What You Need to Know

Israeli autonomous vehicle technology company Mobileye Global, Inc. will soon tap the public market again, according to its S-1 filing with the SEC Friday evening.

What happened: Mobileye said it would offer its Class A common stock in an initial public offering, or IPO, without mentioning the size and the offering price, according to the preliminary prospectus filed on Form S-1.

The company said it intends to use a portion of the net proceeds to repay debt owed to its parent company, Intel Corporation INTC. The rest, if any, would be used for working capital and general business purposes, he added.

After the IPO, the company would have both Class A and Class B common stock, both of which have identical rights for the holders, except for voting, transfer and conversion. Each class A share will be entitled to one vote against ten votes for the class B share.

Goldman Sachs and Morgan Stanley will be the main offer managers.

The company has applied to list its shares on Nasdaq under the symbol "MBLY".

See also: Is Mobileye's IPO a good investment?

Why it matters: Jerusalem-headquartered Mobileye was founded in 1999 by Hebrew University professor Amnon Shashua, who is currently CEO of the company.

It launched its first-generation EyeQ1 processor in 2008, with later versions rolling out in 2010, 2014, and 2018.

The company first went public in 2014 and listed its shares on the NYSE. Less than three years later, Intel acquired it in a $15.3 billion deal. As Intel struggled to turn the situation around, it decided to offload the standalone technology unit in order to focus on its core business.

Intel announced in December 2021 its intention to spin off Mobileye in an IPO, while retaining the majority stake in the latter. A recent Bloomberg report suggested that Intel cut Mobileye's IPO valuation from $50 billion to $30 billion.

Mobileye said in the S-1 filing that its revenue increased 43% in 2021 to $1.4 billion, while revenue for the six months ending 2 July 2022 were up 21% to $854 million. On an adjusted basis, the company earned $474 million in 2021 and $276 million for the first half of 2022.

The filing revealed that more than 50 OEMs have adopted Mobileye's solutions and approximately 800 vehicle models incorporate its EyeQ processors.

Photo: courtesy of ETC-USC on flickr

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