Intel's Mobileye Files for Listing in First Sign of Tech IPO Market Thawing

Sept 30 (Reuters) – Intel’s (INTC.O) self-driving unit Mobileye announced on Friday it would file for a U.S. initial public offering (IPO), even as the market for new issues virtually collapsed. Regardless, tested support for high-profile stock debuts.

The global tech IPO market is experiencing its worst drought in nearly two decades. U.S. public companies have raised just over $7 billion so far this year, according to Dealogic data. Traditional IPOs, excluding special purpose acquisition companies, raised a record $154 billion last year.

However, Mobileye’s IPO follows the European debut of Porsche’s blockbuster and could be an early sign of improving investor sentiment.

If Mobileye’s debut is well received, it may encourage other big names such as Instacart, Reddit and ServiceTitan, who postponed their IPOs earlier this year until the market improves.

Earlier in September, Corebridge Financial Inc (CRBG.N), the life insurance and retirement arm of AIG Inc, raised $1.68 billion in its largest IPO of the year, enduring market volatility and closing seven major listings. Ended the monthly stagnation.read more

brave volatility

Mobileye, which filed for an IPO in secrecy earlier this year, reported first-half revenue of $854 million, up 21% from the same period last year, according to its IPO filings. In 2021, Mobileye will record his $1.4 billion in revenue.

Reuters first reported in April that Mobileye used investment banks Goldman Sachs Group (GS.N) and Morgan Stanley to lead the preparations for the IPO of its self-driving car division.read more

In Friday’s filing, Mobileye confirmed Goldman Sachs and Morgan Stanley as its lead underwriters.

Mobileye plans to list its shares on the Nasdaq under the ticker “MBLY”.

Mobileye has yet to set an IPO price range, but Reuters reports that the company could target a valuation as high as $50 billion in the sale of shares.read more

A source familiar with the matter said Friday that unfavorable market conditions could cause Mobileye to lower its IPO valuation.

Intel didn’t disclose its stake at the time of its public offering, but the chip giant has previously said it will be a majority profit.

The Mobileye listing is part of a broader strategy under Intel CEO Pat Gelsinger to turn around its core business.read more

Israeli company Mobileye, which Intel acquired in 2017 for about $15.3 billion, uses a camera-based system with adaptive cruise control and lane change assistance in its self-driving cars.

In addition to self-driving chips and software, Mobileye provides driver assistance and mapping technologies in use today.

Mobileye, whose customers include BMW, Audi, Volkswagen, Nissan, Honda and General Motors, is chip maker Nvidia (NVDA.O) and Qualcomm (QCOM.O).

Additional reporting by Bhanvi Satija and Niket Nishant from Bangalore. Edited by Sriraj Kalluvila and Richard Chang

Our standards: Thomson Reuters Trust Principles.