The IPOX® Watch - IPO Pre-Launch Analysis: Mobileye
Company Description
Founded in 1999, Mobileye Global Inc. develops autonomous driving technologies and advanced driver assistance systems (ADAS) includeing cameras, computer chips and software. The company headquarters are based in Jerusalem, Israel. Mobileye established its first R&D center in 2004 and launched the first version of their EyeQ SoC (system-on-chip) in 2008. Currently available models of EyeQ allow low-level driving automation such as cruise control, lane guidance, automated braking, traffic sign information and low/high beam assistance. New EyeQ models allowing autonomous parking and self-driving on highways were unveiled at CES 2022 for a 2024 launch. The company shipped over 117 million SoCs to date, 16 million in H1 2022.
Business Model
Mobileye generates the majority of revenues from selling their system to automakers. Brands using Mobileye technology include BMW, Cadillac, Ford, Toyota, Nio, Geely, Tesla and more. The firm also plans to use AI technology to offer "Automated Mobility as a Service" (AMaaS) and plans to become a "Robotaxi" operator. They operate their own network domestically and have recently entered a partnership with car rental firm SIXT to offer self-driving vehicles in the future.
IPO History
On 08/01/2014, Mobileye NV began trading on the New York Stock Exchange after raising $890 million, in an IPO led by Goldman Sachs, which was then the largest ever U.S. offering by an Israeli company. Shares were priced at $25, above the expected range of $21 to $23. Shares soared in the company's market debut, surging as much as +58% to a valuation of about $8.4 billion.In 2017 the company was acquired by Intel for $15.3 billion.
Four years after its acquisition, Intel announced plans to take the company public again, maintaining majority ownership. On 10/25/2022 the new IPO was priced at $21/shr, above the indicated price range of $18-20, raising $861m at a valuation of $16.7 billion, markedly lower than the initial estimate of around $50 billion when the Re-IPO plans were first announced. Mobileye re-entered the U.S. market on 10/26/2022 under its previous ticker, MBLY US
Research on “Re-IPOs”
Academic research by University of Florida Warrington College of Business Professor Jay Ritter shows that firms that go public a second time tend to have a more muted debut. However, these Re-IPOs tend to outperform. Ritter looked at 71 firms that re-entered the stock market since 1975 and found that they finished their first three years +48% higher, compared with average IPO returns of 24%.
