Israel's Mobileye starts road show for $500 million NYSE IPO

JERUSALEM Mon Jul 21, 2014 8:57am EDT

A device, part of the Mobileye driving assist system, is seen on the dashboard of a vehicle during a demonstration for the media in Jerusalem October 24, 2012. Mobileye, which makes technology to help drivers, expects sales to more than double every year for the next few years as car manufacturers look to offer more safety features and self-drive cars gain in popularity. REUTERS/Baz Ratner (JERUSALEM - Tags: SCIENCE TECHNOLOGY TRANSPORT BUSINESS) - RTR39IZE

A device, part of the Mobileye driving assist system, is seen on the dashboard of a vehicle during a demonstration for the media in Jerusalem October 24, 2012. Mobileye, which makes technology to help drivers, expects sales to more than double every year for the next few years as car manufacturers look to offer more safety features and self-drive cars gain in popularity.

Credit: Reuters/Baz Ratner (JERUSALEM - Tags: SCIENCE TECHNOLOGY TRANSPORT BUSINESS) - RTR39IZE

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JERUSALEM (Reuters) - Mobileye N.V., which makes software and cameras that help cars avoid accidents, said on Monday it has launched a road show for its U.S. initial public offering of around $500 million.

The Israeli based company will sell 27.75 million shares - 8.325 million by Mobileye itself and another 19.425 million by the selling shareholders.

Mobileye said it expects the IPO on the New York Stock Exchange to price at $17 to $19 a share and list under the symbol MBLY. That would bring in proceeds of $472 million to $527 million.

The selling shareholders have also granted the underwriters an option to purchase up 4.16 million additional shares to cover any over-allotments.

Goldman Sachs and Morgan Stanley are lead underwriters.

The company's collision-avoidance technology is used in more than 3 million vehicles made by the likes of BMW and General Motors.

Mobileye's systems include a windshield-mounted camera that takes pictures of what is in front of the driver. The images are processed and, in real-time, a small device on the dashboard gives the driver audio-visual warnings.

Amnon Shashua, the firm's chairman, and Ziv Aviram, its chief executive, each own 9 percent in the company.

Mobileye's other top shareholders include Goldman Sachs Group Inc, Fidelity Investments, BlackRock, and Enterprise Holdings, the No 1 U.S. car rental company.

Mobileye's revenue doubled to $81.2 million for the year ended Dec. 31. The company swung to a profit of about $20 million in the year from a loss of $53 million a year earlier.

(Reporting by Steven Scheer)

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