Intel Mobileye spinoff: Valuation, timing, and details of INTC’s IPO in full
By Jenny McCall
11:19, 18 October 2022
It’s a blockbuster listing, that is expected to take Wall Street by storm. Five years after acquiring Mobileye, a self-driving tech company, technology group, Intel Corporation (INTC) will be spinning off the Israel-based company for $16bn (£14bn) and it will mark Mobileye’s return to the public markets.
Mobileye recently filed for an initial public offering (IPO) in the US and in a statement from Intel (INTC) it said: "Mobileye Global Inc. has publicly filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) relating to a proposed initial public offering of its Class A common stock.”
Intel Corporation (INTC) share price chart
“The timing, number of shares to be offered and the price range for the proposed offering have not yet been determined. Mobileye intends to list its Class A common stock on the Nasdaq Global Select Market under the ticker symbol “MBLY.”
Intel’s share price has been down 48% this year and it wll be hoping that this latest spin-off will help the chipmaker claw back some losses and see some positive share price movements.
Indeed, since the announcement was made by Intel (INTC) on 3 October, the group’s stock has been up 2%.
So, here are the details in full.
What is your sentiment on INTC?
How much is Mobileye valued at?
Reports claim the spin-off will value Mobileye at $16bn. However, Reuters reported back in April that the listing could value Mobileye at $50bn.
When is the IPO scheduled for?
Plans to list shares on Nasdaq under the ticker "MBLY", is still aiming for the shares to begin trading on Oct. 26, Wall Street Journal reported.
How many shares will be offered?
A statement from Intel said: “Mobileye intends to list its Class A common stock on the Nasdaq Global Select Market under the ticker symbol “MBLY.”
Intel has also confirmed that it will be offering 41 million shares of common stock, which will be priced between $18 and $20 per share.
Why is Intel (INTC) spinning off Mobileye?
The spin-off will allow Intel (INTC) to focus on its core business by streamlining its operations. It will also enable Mobileye to become a stronger player in the marketplace.
Will Intel still have a stake in Mobileye?
After the IPO is completed, Intel will retain its majority stake in Mobileye and help it to expand its growing autonomous vehicles.
Intel CEO, Patrick Gelsinger recently said: “Paris is the latest in a list of locations where Mobileye is piloting autonomous vehicle test fleets, including New York, Munich, Detroit, Tokyo, Israel, and China. Looking ahead, we still expect to launch commercial Robo-taxi services in Munich and Tel Aviv in 2022. As we announced in December, we are working to take Mobileye public to unlock shareholder value. We are making good progress and we’ll share more as we go through the year.”
Are there any risks to the IPO?
This year has been a challenging time for the markets, and it is expected that 2023 will also bring with it further problems. With a war in Ukraine, interest rate hikes and recession worries continuing, IPO activity has taken a bit of a back seat lately.
But there have been some stand-out IPOs recently, such as Volkswagen's (VOW3) recent spin-off of its luxury car group Porsche (P911), as well as GlaxoSmithKline (GSK) off-loading its consumer healthcare division and forming a new publicly listed company called Haleon (HLN). As a result, these positive IPOs may help ease investor fears.
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