Intel’s Mobileye files to list in first sign of tech IPO market

Sept 30 (Reuters) – Intel Corp’s ( INTC.O ) autonomous unit Mobileye announced a U.S. initial public offering on Friday, testing support for the high-profile stock’s initial public offering as the market for new issues nearly fell.

The tech IPO market is in the midst of its worst drought in nearly two decades. US listings have collected a little more than $7 billion this year, according to Dealogic data. Last year, traditional IPOs, excluding special purpose buyout companies, raised a record $154 billion.

Mobileye’s IPO, a blockbuster debut for Porsche in Europe, may be the first sign of improving investor sentiment, however.

If Mobileye’s debut is well-received, it could boost big names like Instacart, Reddit and service titans, which earlier this year postponed their IPOs until the market improved.

In early September, AIG Inc’s life insurance and pension unit Corebridge Financial Inc ( CRBG.N ) raised $1.68 billion in its biggest IPO of the year, showing market volatility and ending a seven-month hiatus in major listings. Read more

Bold flexibility

Mobileye, which filed for its IPO earlier this year, reported first-half revenue of $854 million, a 21 percent jump from last year, according to its IPO filing. By 2021, Mobileye will post $1.4 billion in revenue.

Mobileye has tapped investment banks Goldman Sachs Group Inc ( GSN ) and Morgan Stanley to take its self-driving car division public, Reuters first reported. Read more

In a filing on Friday, Mobileye confirmed that Goldman Sachs and Morgan Stanley are the underwriters.

Mobileye plans to list the shares on the Nasdaq under the symbol “MBLY.”

Mobileye has yet to set a price range for its IPO, but Reuters reports that the company could target as much as $50 billion for the stock sale. Read more

A source familiar with the matter said on Friday that Mobileye may lower its IPO estimate due to negative market conditions.

Intel didn’t disclose its stake in the segment when it went public, but the chip giant has said in the past that it will be of interest to the masses.

Mobile’s listing is part of Intel’s broader strategy to transform its core business under CEO Pat Gelsinger. Read more

In the year Mobileye, an Israeli company that Intel bought for $15.3 billion in 2017, uses camera-based adaptive cruise control and lane change assist in driverless cars.

In addition to self-driving chips and software, Mobileye provides the driver assistance technology and mapping technology in use today.

Mobileye, which counts BMW, Audi, Volkswagen, Nissan, Honda and General Motors among its customers, has been a bright spot for Intel, which faces stiff competition from Nvidia Corp ( NVDA.O ) and Qualcomm Inc ( QCOM ) in chipmaking. oh)

Additional reporting by Bhanvi Satija and Niket Nishant in Bengaluru; Editing by Sriraj Kalluvila and Richard Chang

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