Mobileye IPO: what you need to know and how to buy shares
Here’s everything you should know about the upcoming initial public offering (IPO) of Intel subsidiary, Mobileye Global Inc.
When is the Mobileye IPO expected to take place?
It is still unclear when exactly the autonomous driving technology system developer is going public, but an IPO looks more certain than ever, after parent company Intel filed an IPO prospectus with the US Securities and Exchange Commission in the last week of September 2022.
While it is still not guaranteed that Mobileye will actually list (an earlier leaked internal memo revealed that Mobileye’s CEO is willing to postpone the IPO until ‘markets stabilise’), the filing of a prospectus indicates Intel’s intention to go through with the flotation.
At the same time, it also revealed several key details to investors and industry watchers with keen interest in the company, including the fact that Intel is set to rake in $3.5 billion in proceeds while still retaining majority shareholding in Mobileye.
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What does Mobileye do?
Mobileye was founded in 1999 in Jerusalem by Hebrew University professor Amnon Shashua, who evolved his academic research into a vision system that could detect vehicles using a camera and software algorithms on a processor.
The company has since evolved, and today develops autonomous driving technologies and advanced driver-assistance systems using ‘intelligence’, including cameras, computer chips and software.
Most of Mobileye’s revenue comes from the sale of its assisted driving products and services, with the bulk of those sales attributed to its EyeQ chips.
Other products include the Road Experience Management, which uses real-time data from Mobileye-equipped vehicles to build out a global 3D map.
In 2014, Mobileye started to trade on the New York Stock Exchange. Then, in March 2017, Intel acquired Mobileye for $15.3 billion, which is the largest-ever takeover of an Israeli tech company.
Who are Mobileye’s competitors?
Mobileye’s main competitors include Wayne, iMotion.ai and Cruise Automation.
Wayve develops autonomous driving systems using artificial intelligence and machine learning, while iMotion.as specialises in the development of advanced driver-assistance systems such as adaptive cruise control and automatic emergency brake.
Meanwhile, Cruise Automation has developed highway autopilot systems that uses sensors and machine vision technology to keep drivers within their lines and at a safe distance from the cars in front of them.
What is Mobileye valued at and what could the Mobileye share price be?
Intel is hoping to hit a valuation of $30 billion for Mobileye in this second go-around. This is short of its original aim of $50 billion.
Mobileye raised $890 million in its NYSE debut in 2014 via the sale of 35.6 million shares at $25 apiece, giving it a market value of $7.6 billion.
The timing, number of shares to be offered and the price range for the proposed offering have not yet been determined. Mobileye intends to list its Class A common stock on the Nasdaq Global Select Market under the ticker symbol ‘MBLY’.
What is the outlook for Mobileye?
Since the acquisition by Intel in 2017, Mobileye’s revenue has grown nearly seven times to $1.39 billion in 2021.
Compared to Intel, whose revenue is down 14% year-to-date as of July 2022, Mobileye’s revenue is up 21% year-on-year.
Mobileye has also narrowed its losses over the last three years, from $328 million in 2019 to $75 million in 2021.
However, losses currently stand at $67 million for the first six months of 2022. This is due to increased research and development expenses, which rose 39% year-on-year.
While the automated driving market is on the up, the industry remains nascent and filled with some roadblocks, including the nearly 400 automated vehicle-related crashes, five deaths and six injuries reported between July 2021 and May 2022.
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