Tag Archives: Mobileye

Business

Mobileye pops more than 30% in IPO after spinning out of Intel

Leave a comment

Amnon Shashua, president and chief executive officer of Mobileye Global Inc., and Patrick Gelsinger, chief executive officer of Intel Corp., outside the Nasdaq MarketSite during the company’s IPO in New York, US, on Wednesday, Oct. 26, 2022. 

Michael Nagle | Bloomberg | Getty Images

Mobileye shares popped more than 30% in their stock market debut on Wednesday after the maker of technology for self-driving cars was spun out of Intel.

In a year that’s seen no significant tech IPOs in the U.S., Mobileye offers investors an opportunity to get in on area of growth. But it’s not a new name for the market.

Mobileye was publicly traded before Intel bought the Israeli company in 2017 for $15.3 billion. At its IPO price of $21, Mobileye was valued at just $17 billion, resulting in minimal gains for Intel thus far. The stock, trading under the ticker MBLY, rose to $27.85 on Wednesday.

Intel will retain control of Mobileye and hold over 750 million shares of Class B stock, which has 10 times the voting power of Class A stock. The company said in an Oct. 18 filing that it expected the offering to be priced between $18 and $20 per share.

The IPO raised $861 million, and the move to list Mobileye on the Nasdaq is part of Intel’s broader strategy to turn around its core semiconductor business, which has lagged behind rivals like AMD and Nvidia in recent years. Intel said it would use some funds from the Mobileye listing to build more chip factories as it embarks on a capital-intensive process to become a foundry for other chipmakers.

However, Mobileye’s market cap is far below Intel’s earlier expectations, the latest sign that tech investors have cooled on IPOs and have readjusted their valuations from the frothy days of the past half-decade as interest rates rise and the economy slows.

Founded in 1999, Mobileye has partnered with Audi, BMW, Volkswagen, GM, and Ford to develop advanced driving and safety features such as driver assist and lane-keeping using the company’s “EyeQ” camera, chips, and software. Mobileye CEO Amnon Shashua said in the IPO filing that 50 companies are currently using the company’s technology across 800 vehicle models.

Revenue in the second quarter jumped 41% to $460 million. Net loss narrowed to $7 million from $21 million.

Class A stock is what investors will buy in the IPO, and Intel expected there to be 46.26 million Class A shares outstanding, with the potential for more if the underwriters decide to exercise their option to purchase additional shares.

Intel shares were down slightly on Wednesday and have lost about 47% of their value this year, while the Nasdaq is down 29%.

— CNBC’s Kif Leswing contributed to this report.

WATCH: Intel plans to cut thousands of jobs amid PC slowdown

Read original article here

Business

Intel-owned Mobileye files S-1 for IPO

Leave a comment

Mobileye’s CEO Amnon Shashua poses with a Mobileye driverless vehicle at the Nasdaq Market site in New York, July 20, 2021.

Jeenah Moon | Reuters

Mobileye, an Intel-owned company that makes chips, maps, and software for self-driving cars, has filed for an IPO, according to a prospectus filed with the SEC on Friday.

Mobileye’s filling indicates strong revenue growth for the Israeli-based subsidiary, from $879 million in sales in 2019, to $967 million in 2020, to $1.39 billion last year. Losses have shrunk from $328 million in 2019 to $75 million last year.

The move to list Mobileye on the Nasdaq is part of Intel’s broader strategy to turn around its core business. Intel acquired the company for $15.3 billion in 2017 and had previously announced plans to take Mobileye public this year.

Intel previously said that it would use some funds from the Mobileye listing to build more chip factories as it embarks on a capital-intensive process to become a foundry for other chipmakers.

Mobileye, founded in 1999, has partnered with Audi, BMW, Volkswagen, GM, and Ford to develop advanced driving and safety features such as driver assist and lane-keeping using the company’s “EyeQ” camera, chips, and software. Mobileye CEO Amnon Shashua said in the filing that 50 companies are currently using the company’s technology across 800 vehicle models.

The prospectus says that Mobileye is planning to list Class A common stock, but did not provide the number of shares or price range for the proposed offering. Intel will maintain ownership of Class B shares that have ten times the votes of Class A shares, according to the prospectus, giving it control over the company’s board and other decisions.

Intel is looking to test the public markets at a time where the appetite for futuristic growth technology like self-driving cars have slowed significantly in the face of rising inflation and macroeconomic concerns.

Intel stock was up less than 1% in extended trading.

Read original article here

Business

Intel plans to take self-driving car unit Mobileye public

Leave a comment

Dec 6 (Reuters) – Intel Corp (INTC.O) said on Monday it plans to take self-driving-car unit Mobileye public in the United States in mid-2022, a deal which could value the Israeli unit at more than $50 billion, a person familiar with the matter told Reuters.

Chip giant Intel, the largest employer of Israel’s high-tech industry with nearly 14,000 workers, expects to retain Mobileye’s executive team and hold on to a majority ownership in the unit after the initial public offering (IPO) of newly issued Mobileye stock.

Intel has no intention to divest or spin off its majority ownership in Mobileye, the company said in a statement, adding that it will continue to provide technical resources to the automaker.

Register now for FREE unlimited access to reuters.com

Register

The partnership continues to yield strong revenue along with free cash flow to Mobileye that allows funding of the autonomous vehicle development, Mobileye Chief Executive Officer Amnon Shashua said in a release.

“Amnon and I determined that an IPO provides the best opportunity to build on Mobileye’s track record for innovation and unlock value for shareholders,” Intel CEO Pat Gelsinger said in the statement.

Gelsinger has been under pressure from activist investors such as Third Point LLC to consider spinning off its costly chip manufacturing operations, even as the company has looked to expand its advanced chip manufacturing capacity in the United States and Europe amid a global semiconductor shortage. read more

Intel bought Mobileye for $15.3 billion in 2017, putting it into direct competition with rivals Nvidia Corp (NVDA.O) and Qualcomm Inc (QCOM.O) to develop driverless systems for global automakers.

Carmakers, including General Motors (GM.N), Ford (F.N) and Toyota (7203.T), are racing to shift from gasoline-powered lineups to all electric power and have invested significantly on models with features such as driver-assist technology and self-driving system.

Mobileye, founded in 1999, has taken a different strategy from many of its self-driving car competitors, with a current camera-based system that helps cars with adaptive cruise control and lane change assistance. read more

The company plans to eventually build its own “lidar” sensor to help its cars map out a three-dimensional view of the road and is using lidar units from Luminar Technologies (LAZR.O) on its initial robotaxis in the meantime.

Despite being owned by Intel, Mobileye has never used Intel’s factories to make its chips, instead relying on Taiwan Semiconductor Manufacturing Co (2330.TW) for all of its “EyeQ” chips to date.

The Wall Street Journal first reported Intel’s intent to list the shares.

Register now for FREE unlimited access to reuters.com

Register

Reporting by Stephen Nellis in San Francisco and Akriti Sharma, Jahnavi Nidumolu and Bhargav Acharya in Bengaluru; Additional reporting by Sneha Bhowmik; Editing by Devika Syamnath, Rashmi Aich, Sonya Hepinstall and Sriraj Kalluvila

Our Standards: The Thomson Reuters Trust Principles.

Read original article here