A self-driving car interface

How to buy shares in Mobileye

Mobileye shares closed up more than 37% in their stock market debut after the self-driving car maker was spun out of Intel.

Mobileye ($MBLY) has begun trading on the NASDAQ after offering 41 million shares at US$21 a piece. 

It’s using the same ticker code it had when it was acquired by Intel five years ago for US$15.3b – not far below the current valuation of US$16.7b. But that’s a far cry from 2021 when the company was valued at US$50b before being cut down to US$30b earlier this year. 

The drops reflect the drastic slowdown of the U.S. IPO market, which is on track for its worst performance in over 30 years

Regardless, Intel Corp’s ($INTC) chief executive Pat Gelsinger has said the IPO is not a capital raise but an entry into the market. 

The CEO told the WSJ Tech Live conference, ‘The autonomous vehicle segment is a strong segment for growth. It's a tough market. At the same time, we believe this company should be public and this is the best way to maximize the company's potential.’ 

In saying that, Intel will receive the bulk of the proceeds from the offering. Promising to make sure that Mobileye has $1b in cash and equivalents, the chip maker will take the surplus.

Since Intel purchased Mobileye, the company’s revenue has grown nearly seven times to over US$1.39b in 2021.

The company itself develops and makes advanced driver-assistance systems and autonomous driving technologies. Its prospectus says competitors include Apple, Sony and Tesla. 

Currently over 117 million vehicles have been equipped with its technology, with revenue up 21% year-on-year. Losses have been narrowed over the last three years from US$328m in 2019 to US$75m in 2021.

The company will use the net proceeds to fund operating capital and corporate objectives, as well as repaying a portion of its debt to Intel. 

To keep up with competitors, Mobileye has pledged to spend up to US$23b this year alone to create new chip facilities. 

Mobileye is available to trade now on Stake under the ticker $MBLY.

Want more?

You know what to do

Insights, trends and company deep dives delivered straight to your inbox.

Stake logo
Over 7,000 5-star reviews
App Store logoGoogle Play logo

Subscribe to our free newsletters

By subscribing, you agree to our Privacy Policy.

Stakeshop Pty Ltd is registered as an overseas company in New Zealand (NZBN: 9429047452152), and is registered as a Financial Service Provider under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (No. FSP774414). We hold a full licence issued by the Financial Markets Authority to provide a financial advice service under the Financial Markets Conduct Act 2013. However, the content on this website has not been prepared to take into account any of your individual objectives, financial situation or needs. To the extent you require further information about the relevant New Zealand legislation that may apply, or require specific advice, please contact your legal and/or financial adviser (as appropriate). The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services. At Stake, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Any advice is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice. Please view our Terms & Conditions, Privacy Policy, Financial Advice Disclosure and Disclaimers before deciding to use or invest on Stake. By using the Stake website or service in any way, you agree to our Privacy Policy and Terms & Conditions All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance. Stake is a registered trademark under class 36 (New Zealand).

Copyright © 2024 Stake. All rights reserved.