Intel files for Mobileye IPO, creating share structure that keeps it in control

After nearly a year of waiting, Mobileye is on the freeway to Wall Street.

Intel Corp. INTC,
The property of Mobileye Global Inc. launched its push for an initial public offering in a filing with the Securities and Exchange Commission late Friday, leaving blank for now the size of the offering, which is expected to be one of the largest IPOs grains of the year

Intel executives were targeting mid-2022 late last year and filed confidentially with the SEC in March for an IPO of its self-driving car unit, but the IPO market has dry state amid a fall in stocks, especially those that went out. public in the rush of 2021.

Mobileye plans to trade its Class A common stock on the Nasdaq under the symbol “MBLY,” the same symbol the company had before Intel acquired Mobileye in 2017 for $15.3 billion in cash. While selling Mobileye shares, Intel will maintain official control of the company, retaining Class B shares that carry 10 votes each while selling Class A shares that carry only one vote.

Mobileye also plans to have four Intel-affiliated members on its board, including CEO Pat Gelsinger, who serves as Mobileye’s board chairman.

Intel will also receive payment from the offer: Mobileye issued Intel a $3.5 billion dividend note and expects to pay that with the proceeds of the sale, according to the filing; there was an initial payment of $336 million, leaving more than $3 billion still owed to Intel. Earlier reports suggested that Intel would seek a $30 billion valuation for Mobileye in the IPO, although the initial filing on Friday did not include target prices for the stock.

The filing did include financials: Mobileye reported revenue of $1.39 billion in 2021, well ahead of Nvidia Corp. NVDA,
which reported fiscal year revenue of $566 million in auto chip sales in January. Mobileye reported a loss of $70 million last year, compared with a loss of $196 million in 2020 and $328 million in 2019. Revenue for the first half of this year reached $854 million of dollars, a 41% increase in the second quarter of the previous year.

The filing lists 24 underwriters to the deal, including Goldman Sachs, Morgan Stanley, Evercore ISI, Barclays, Citigroup and B of A Securities.

Intel shares rose 0.5% after hours on Friday, after falling 2.3% in the regular session to close at $25.77.

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