European Union overturned Intel antitrust fine of $1.2 billion. Source: The Register

The Offering of Intel’s Mobileye is the First Indication of a Thawing Tech IPO Market.

In spite of the fact that the market for new issues has all but collapsed, Intel Corp.’s self-driving business Mobileye on Friday announced its filing for a U.S. initial public offering, testing support for a high-profile stock debut.

The tech IPO market is currently experiencing its worst dry spell in close to two decades. According to data from Dealogic, U.S. listings have raised just over $7 billion so far this year. A record $154 billion was raised by conventional IPOs last year, excluding special purpose acquisition companies.

However, the IPO of Mobileye, which followed Porsche’s huge success in Europe, maybe a precursor to an uptick in investor sentiment.

Planet Concerns

If Mobileye’s debut is favourably received, other well-known companies like Instacart, Reddit, and ServiceTitan, which delayed their IPOs earlier this year until the market improves, might be encouraged to move forward.

AIG Inc.’s life insurance and retirement company Corebridge Financial Inc. raised $1.68 billion in the largest IPO of the year earlier in September, defying market turbulence and bringing an end to a seven-month hiatus in significant listings.

According to its IPO filing, Mobileye reported first-half sales of $854 million, a 21% increase from the same period last year. Mobileye filed confidentially for its IPO earlier this year. Mobileye reported $1.4 billion in revenue for 2021.

The hiring of investment banks Goldman Sachs Group Inc. and Morgan Stanley by Mobileye to oversee the unit’s preparations was originally reported by Reuters in April.

Mobileye stated in its filing on Friday that Morgan Stanley and Goldman Sachs are the lead underwriters.

Shares of Mobileye will be listed on Nasdaq under the symbol “MBLY.”

Although Mobileye has not yet established a price range for its IPO, Reuters has speculated that the company may aim for a $50 billion value for the sale of its shares.

According to a source with knowledge of the situation, Mobileye may reduce its estimated IPO valuation due to unfavourable market conditions.

When the entity goes public, Intel will keep a share, which the chipmaker did not specify, but has previously stated that it would be a majority holding.

The Mobileye IPO is a component of Intel’s broader turnaround strategy for its core company under Chief Executive Pat Gelsinger.

A camera-based system with adaptive cruise control and lane change assistance is used in driverless cars by Mobileye, an Israeli startup that Intel acquired in 2017 for approximately $15.3 billion.

Mobileye offers current-use driver assistance and mapping technologies in addition to self-driving chips and software.

A bright light for Intel has been Mobileye, which has clients like BMW, Audi, Volkswagen, Nissan, Honda, and General Motors. Qualcomm Inc. and Nvidia Corp. are tough competitors for Intel in the chip-making industry.

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