Intel's Mobileye files for listing in first sign of thawing tech IPO market

Intel's Mobileye seeks drastically lower $16 billion valuation in IPO
Intel's Mobileye seeks drastically lower $16 billion valuation in IPO   -   Copyright  Thomson Reuters 2022   -  
By Reuters

<div> <p>By Anirban Sen and Jane Lanhee Lee</p> <p> -Intel Corp’s self-driving unit Mobileye on Friday unveiled its filing for a U.S. initial public offering, testing support for a high profile stock debut even as the market for new issues has virtually collapsed. </p> <p>The tech <span class="caps">IPO</span> market globally is in the middle of its worst drought in nearly two decades. U.S. listings have raised a little over $7 billion so far this year, according to data from Dealogic. Last year traditional <span class="caps">IPO</span>s, excluding special purpose acquisition companies, had raised a record $154 billion. </p> <p>Mobileye’s <span class="caps">IPO</span>, coming on the heels of Porsche’s blockbuster debut in Europe, could, however, be an early sign of improving investor sentiment.</p> <p>If Mobileye’s debut is received well, it may embolden other big names such as Instacart, Reddit and ServiceTitan, which postponed their <span class="caps">IPO</span>s earlier this year until the market improves. </p> <p>Earlier in September, <span class="caps">AIG</span> Inc’s life insurance and retirement division Corebridge Financial Inc raised $1.68 billion in the year’s biggest <span class="caps">IPO</span>, braving market volatility and ending a seven-month lull in major listings.</p> <p><span class="caps">BRAVING</span> <span class="caps">VOLATILITY</span></p> <p>Mobileye, which confidentially filed for its <span class="caps">IPO</span> earlier this year, reported first-half revenue of $854 million, a 21% jump from the year-ago period, according to its <span class="caps">IPO</span> filing. In 2021, Mobileye posted $1.4 billion of revenue. </p> <p>Reuters was first to report in April that Mobileye had tapped investment banks Goldman Sachs Group Inc and Morgan Stanley to lead preparations for the self-driving car unit to go public.</p> <p>In its filing on Friday, Mobileye confirmed that Goldman Sachs and Morgan Stanley are the lead underwriters.</p> <p>Mobileye plans to list shares on Nasdaq under the ticker “<span class="caps">MBLY</span>.” </p> <p>Mobileye has not set a price range for its <span class="caps">IPO</span> yet, but Reuters has reported that the company could target a valuation as high as $50 billion for its share sale. </p> <p>A source familiar with the matter said on Friday that Mobileye may lower its <span class="caps">IPO</span> valuation estimate due to adverse market conditions.</p> <p>Intel did not reveal the stake it will retain in the unit when it goes public, but the chip giant has previously said it would be a majority interest.</p> <p>The Mobileye listing is part of Intel’s broader strategy under Chief Executive Pat Gelsinger to turn around its core business.</p> <p>Mobileye, an Israeli company that Intel bought for about $15.3 billion in 2017, uses a camera-based system with adaptive cruise control and lane change assistance in driverless cars.</p> <p>In addition to self-driving chips and software, Mobileye offers driver assistance technology and mapping technology that are in use today.</p> <p>Mobileye, which counts <span class="caps">BMW</span>, Audi, Volkswagen, Nissan, Honda and General Motors as its clients, has been a bright spot for Intel, which faces stiff competition in chip-making from Nvidia Corp and Qualcomm Inc.</p> </div>