Wall Street is closing in on Mobileye. In the pipeline since the end of 2021, the IPO of Intel’s Israeli subsidiary specializing in autonomous driving technologies is about to materialize. On Friday September 30, the company, acquired by Intel for 15.3 billion dollars in 2017, filed its IPO file with the Securities and Exchange Commission (SEC), the American stock market policeman. In the latter, it is specified that the American banks Goldman Sachs and Morgan Stanley will be in charge of directing the preparations for the operation.
With this IPO, Intel was initially aiming for a valuation of around $50 billion, but the American firm finally lowered its ambitions, to nearly $30 billion according to Bloomberg, in a difficult environment for technology stocks on the stock markets. Since the start of the year, listings in the United States have raised just over $7 billion, according to data compiled by Dealogic, compared to $154 billion in the whole of an exceptional year 2021.
All lights are green at Mobileye
Despite the current slump, the success of Porsche’s IPO in Europe last week is something to reassure Mobileye. If the Intel subsidiary has a successful debut on Wall Street, other tech heavyweights, like Instacart and Reddit, which have put their IPO plans on hold until the situation improves, could follow in its footsteps to complete the deal. 2022 on a slightly more positive note.
Operating in the highly competitive self-driving car market, Mobileye is doing well, with revenues growing from $879 million in 2019 to $1.4 billion in 2021. In the first half of 2022, the company achieved revenue of business of 854 million euros, up 21% compared to the same period last year. These financial performances could be an asset in the face of particularly cautious investors in recent months.
In addition, Mobileye has given exciting development prospects, with the establishment of a robotaxis service in Germany this year and plans to launch a driverless delivery service in 2023. The company is also testing autonomous vehicles in New York and has partnered with Chinese automaker Geely to develop and market self-driving cars in China from 2024.