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Intel's ( INTC ) self-driving technology unit Mobileye ( MBLY ) has priced its initial public offering of 41 million shares of its Class A common stock at $21.00 per share, above its previously estimated $18.00 - $20.00 per share range, valuing unit at a market value of about $16.7 billion.
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Trading commences today.
- The offering Closing date is expected October 28, 2022.
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Underwriters have a 30-day option to purchase up to an additional 6.15M common shares.
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The significant portion of net proceeds of ~$0.8B will be used for repayment on a note owed to its parent company, Intel and the remaining for working capital and general corporate purposes.
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The self driving unit will raise additional $100M through private placement of 4.76M common shares at the initial offering price.
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Mobileye went public in 2014. It was acquired by Intel in 2017. Intel currently owns 100% of Mobileye shares and is expected to retain majority ownership following the completion of the IPO.
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In December, some analysts speculated that Mobileye ( MBLY ) was worth $50B, but now it will be valued around $16.7B. For comparison purposes, Intel bought the company for roughly $15.3B in 2017.
For further details see:
Intel's Mobileye prices IPO At $21.00, above expected range