Mobileye IPO on hold due market conditions, say reports
An initial public offering of shares in Intel subsidiary Mobileye is being postponed until markets stabilize, according to reports citing sources at the autonomous driving chip firm.
According to a letter to employees from Mobileye founder and CEO Amnon Shashua, seen by Israel’s CTech publication; “The issue is the ‘market condition’. “
Shashua added: “Valuation is not the reason to wait. Lack of stability, or high volatility, on the other hand, could have a negative effect on the results of any IPO, both on the date of the IPO and going forward. I believe that achieving the target of a successful IPO, and sustaining such success for the long term, requires us to wait for the market to stabilize. We still hope it will happen during 2022.”
Intel announced plans for Mobileye to go public last December (see Intel to take Mobileye public) via an initial public offering (IPO) of newly-issued Mobileye stock in mid-2022.
Intel acquired Mobileye for about US$15 billion in 2017 and has operated it as wholly-owned subsidiary since then. In April Intel announced Mobileye had revenue of $394 million in 1Q22, up 4 percent year-on-year.
Intel was expected to retain a majority position in an IPO that could value Mobileye at $50 billion. Mobileye continued with preparations for the IPO in April by filing confidentially with the US Securities and Exchange Commission.
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