Intel’s Self-Driving Division Mobileye Files For A U.S. IPO
Mobileye, the self-driving division of chipmaking giant Intel, is aiming for a public listing in the U.S. It has unveiled an S-1 filing with the U.S. Securities and Exchange Commission (SEC), showing its intention to list on the Nasdaq exchange.
- Mobileye is an Israeli company that develops hardware and software for automobile self-driving and driver assistance systems. Intel paid $15bn to acquire the company in 2017 and announced its intention to take it public last year.
- This wouldn’t be Mobileye’s first stint on the public markets. It went public on the New York Stock Exchange (NYSE) in 2014, raising $1bn in what marked the largest Israeli IPO on a U.S. exchange, before selling to Intel three years later. That IPO record has been surpassed by the likes of SentinelOne ($1.2bn), a cybersecurity company, and Playtika ($1.9bn), a mobile gaming company.
As expected, Mobileye’s S-1 filing provides insight into its business. The company brought in $1.4bn in revenue in its last fiscal year (ended December 25, 2021), compared to $967mn in the previous year. It reported a $75mn net loss in 2021, compared to $196mn a year earlier.
There’s an interesting bit revealed by the S-1 filing: the terms of a recent corporate restructuring included Mobileye agreeing to pay a $3.5bn dividend to its parent company Intel. This May, Mobileye paid Intel the first tranche of $336mn. The company intends to use a slice of the IPO proceeds to pay part of the dividend balance, the exact amount not yet determined.
The dividend notes that Mobileye issued to Intel will mature on April 2025, meaning the Israeli company expects to have paid it all by then.
- Mobileye intends to list on the Nasdaq exchange with the “MBLY” trading symbol. The company hasn’t yet specified how much it intends to raise by selling shares.
Mobileye is seeking to go public at a time when the IPO market for tech companies (and other industries) has floundered. According to Dealogic, US IPOs have raised $7bn so far in 2022, down 94% from the same period last year.