Sept 30 (Reuters) - Intel Corp's 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
Earlier in September, AIG Inc's life insurance and
retirement division Corebridge Financial Inc raised
$1.68 billion in the year's biggest IPO, braving market
volatility and ending a seven-month lull in major listings.
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 and
Morgan Stanley to lead preparations for the self-driving
car unit to go public.
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
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.
A source familiar with the matter said on Friday that
Mobileye may lower its IPO valuation estimate due to adverse
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
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 and Qualcomm Inc.
(Additional reporting by Bhanvi Satija and Niket Nishant in
Bengaluru; Editing by Sriraj Kalluvila and Richard Chang)