Intel-owned Israeli self-driving company Mobileye is set to float an initial public offering that could potentially value it at $30 billion.
The Jerusalem-based auto-tech major, which was acquired by Intel Corp in 2017 for $15.3 billion, did not reveal how much money it was looking to raise or for that matter the valuation it was seeking on the Nasdaq.
Mobileye’s IPO plan comes on the heels of the listing of Porsche, which raised more than €8 billion in Germany at a valuation of around €72 billion.
In the IPO, Intel will not offer any Mobileye shares for sale. Mobileye, on the other hand, will pay Intel a $3.5 billion dividend from the sale proceeds of the shares. In 2021, the company had paid its parent $336 million in dividend.
The $3.5 billion payout will effectively settle an interest-bearing liability that Mobileye owes Intel, on which it has been paying its parent an interest to the tune of 1.26% per annum.
The Israeli company was founded in 1999 by Amnon Shashua and Ziv Aviram. It develops advanced driver assistance systems as well as tech solutions for autonomous vehicles.
This will effectively be a second listing for Mobileye, which was first listed on the New York Stock Exchange at a valuation of $5.3 billion in 2014. Its valuation jumped to $10.5 billion by 2017 when it was acquired by Intel.
Mobileye’s filing with the US Securities and Exchange Commission shows that over the last three years, its revenue has jumped from $879 million in 2019 to $1.4 billion in 2021.
The company’s revenue grew 21.3% in the first six months of 2022 from a year earlier. But operating expenses rose more than 29% owing primarily to spends on research and development.
It posted a net loss of $67 million for the first half of 2022, compared with a net profit of $4 million in the corresponding period of 2021.