MBLY Stock IPO: When Does Mobileye Go Public? What Is the Mobileye IPO Price Range?

  • Intel (INTC) now expects MBLY stock to be valued at about $15.9 billion, down from an initial estimate of $50 billion.
  • MBLY stock is due to start trading on Oct. 26.
  • Shares are expected to change hands for between $18 and $20 per share.
An image of a finger pressing an autonomous drive button; autonomous vehicles
Source: Olivier Le Moal/Shutterstock

Following the initial public offering (IPO) of Intel’s (NASDAQ:INTC) Mobileye unit, shares of MBLY stock are expected to start trading on the Nasdaq on Oct. 26. Intel expects the company to be valued at about $15.9 billion. Originally, it had reportedly estimated a $50 billion valuation for the unit.

Now, however, Intel expects MBLY stock to change hands for between $18 and $20 per share. As reported in a previous column for InvestorPlace, Mobileye makes components for advanced driver assistance systems (ADAS) and self-driving features in vehicles.

Intel acquired Israel-based company for roughly $15.3 billion back in 2017.

A Potential Positive Read-Through for MBLY Stock

When Intel first began planning this IPO in late 2021, the company estimated that Mobileye would be valued at $50 billion, according to multiple outlets. Earlier this month, though, the expected valuation reportedly declined in a big way.

Last year, Intel had intended to launch a Mobileye IPO in the middle of 2022. However, the offering has been delayed until now due to the poor condition of equity markets.

Despite the lower valuation, MBLY may still have a win coming up, though. Another company recently provided a possible positive read-through for its full-year results.

Specifically, leading lidar (light detection and ranging) developer Luminar (NASDAQ:LAZR) increased its 2022 sales guidance back in August. The company increased its range to between $40 million and $45 million, up from just $40 million previously. Luminar also expects its orders to surge between 40% and 60% this year.

Lidar devices, like Mobileye’s offerings, are used to facilitate ADAS and autonomous driving. Perhaps Mobileye’s most valuable product is its EyeQ chip, which coordinates information collected by sensory devices on a given vehicle.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

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