MobilEyeOn the first day of the US IPO, opened higher and closed higher and closed at at $28.56, with gaining reaching 37.95%, and once surged to $29.86 during the session. The previously given IPO price is US$21 per share.
On Tuesday, MobilEye, a subsidiary of Intel , finally finalized its listing plan: this listing issuance of 41 million shares, raising US$861 million, and the company's valuation is about US$17 billion. That valuation is higher than the $15.3 billion Intel spent in 2017 to acquire the company, but is only one-third of the $50 billion it initially expected when it announced its listing plan late last year.
MobilEye's IPO is priced at US$21 per share, which is $1 higher than the upper limit of the target range, after its previous IPO pricing target range of US$18 to US$20. Goldman Sachs and Morgan Stanley are joint sponsors.
Given the market downturn, it is no surprise that MobilEye has significantly cut its valuation this time. As domestic interest rates soar in the United States, the sharp fluctuations in its major stock indexes have had an impact on the IPO market in 2022. According to Dealogic data, the financing scale of US stock IPO has been only US$7.4 billion so far this year, and makes this year the worst year for the issuance of new US stocks in decades. MobilEye's listing is also the last large-scale IPO of the US stock market this year.
As the former "king of autonomous driving", after joining forces with semiconductor giant Intel, MobilEye can be said to be invincible in the field of autonomous driving chips. Before 2020, intelligent driving chips were almost monopolized by MobilEye.
But in the past year, technology stock has been severely impacted by the market. Nasdaq Composite Index , which is mainly tech stocks, fell 26% from the same period last year. Intel has previously significantly lowered its expected valuation of MobilEye, from the previous expected $50 billion to about $30 billion. Another challenge for
MobilEye is that demand for driverless car technology was very strong a few years ago, but has cooled now, and the company faces fierce competition among its peers, including competition from Waymo, a parent company of Alphabet, and Zoox, a subsidiary of Amazon.
In challenging market conditions, Intel's decision to advance the MobilEye IPO has sparked speculation that the chip maker is under pressure to raise cash to fund its business transformation plan. Intel CEO Pat Gelsinger said earlier this week that the company conducted an IPO to make MobilEye a public company, not to raise funds for Intel.
Still, Intel disclosed on Wednesday that a "large percentage" of the $800 million net income generated by the MobilEye IPO will be used to pay back the notes to Intel.
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