Intel's Mobileye files for listing in first sign of thawing tech IPO market

Mobileye driverless technology at the Nasdaq Market site in New York
Mobileye driverless car logo is seen on a vehicle at the Nasdaq Market site in New York, U.S., July 20, 2021. REUTERS/Jeenah Moon

Sept 30 (Reuters) - Intel Corp's (INTC.O) self-driving unit Mobileye on Friday unveiled its filing for a U.S. initial public offering, testing support for a high profile stock debut even as the market for new issues has virtually collapsed.

The tech IPO market globally is in the middle of its worst drought in nearly two decades. U.S. listings have raised a little over $7 billion so far this year, according to data from Dealogic. Last year traditional IPOs, excluding special purpose acquisition companies, had raised a record $154 billion.

Mobileye's IPO, coming on the heels of Porsche's blockbuster debut in Europe, could, however, be an early sign of improving investor sentiment.

If Mobileye's debut is received well, it may embolden other big names such as Instacart, Reddit and ServiceTitan, which postponed their IPOs earlier this year until the market improves.

Earlier in September, AIG Inc's life insurance and retirement division Corebridge Financial Inc (CRBG.N) raised $1.68 billion in the year's biggest IPO, braving market volatility and ending a seven-month lull in major listings. read more


Mobileye, which confidentially filed for its IPO earlier this year, reported first-half revenue of $854 million, a 21% jump from the year-ago period, according to its IPO filing. In 2021, Mobileye posted $1.4 billion of revenue.

Reuters was first to report in April that Mobileye had tapped investment banks Goldman Sachs Group Inc (GS.N) and Morgan Stanley to lead preparations for the self-driving car unit to go public. read more

In its filing on Friday, Mobileye confirmed that Goldman Sachs and Morgan Stanley are the lead underwriters.

Mobileye plans to list shares on Nasdaq under the ticker "MBLY."

Mobileye has not set a price range for its IPO yet, but Reuters has reported that the company could target a valuation as high as $50 billion for its share sale. read more

A source familiar with the matter said on Friday that Mobileye may lower its IPO valuation estimate due to adverse market conditions.

Intel did not reveal the stake it will retain in the unit when it goes public, but the chip giant has previously said it would be a majority interest.

The Mobileye listing is part of Intel's broader strategy under Chief Executive Pat Gelsinger to turn around its core business. read more

Mobileye, an Israeli company that Intel bought for about $15.3 billion in 2017, uses a camera-based system with adaptive cruise control and lane change assistance in driverless cars.

In addition to self-driving chips and software, Mobileye offers driver assistance technology and mapping technology that are in use today.

Mobileye, which counts BMW, Audi, Volkswagen, Nissan, Honda and General Motors as its clients, has been a bright spot for Intel, which faces stiff competition in chip-making from Nvidia Corp (NVDA.O) and Qualcomm Inc (QCOM.O).

Additional reporting by Bhanvi Satija and Niket Nishant in Bengaluru; Editing by Sriraj Kalluvila and Richard Chang

Our Standards: The Thomson Reuters Trust Principles.

Thomson Reuters

Anirban Sen is the Editor in Charge for U.S. M&A at Reuters in New York, where he leads the coverage of the biggest deals. After starting with Reuters in Bangalore in 2009, Anirban left in 2013 to work as a technology deals reporter in several leading business news outlets in India, including The Economic Times and Mint. Anirban rejoined Reuters in 2019 as Editor in Charge, Finance to lead a team of reporters, covering everything from investment banking to venture capital. Anirban holds a history degree from Jadavpur University and a post-graduate diploma in journalism from the Indian Institute of Journalism & New Media. Contact:+1 (646) 705 9409

Thomson Reuters

Reports on global trends in computing from covering semiconductors and tools to manufacture them to quantum computing. Has 27 years of experience reporting from South Korea, China, and the U.S. and previously worked at the Asian Wall Street Journal, Dow Jones Newswires and Reuters TV. In her free time, she studies math and physics with the goal of grasping quantum physics.