One of the hottest initial public offerings (IPOs) of the year takes place today as Mobileye Global (NASDAQ:MBLY), the self-driving technology company owned by Intel (NASDAQ:INTC), begins trading on the Nasdaq stock exchange under the ticker symbol “MBLY.” As MBLY stock begins trading, we offer up 10 things investors should know about the company and its IPO.
What to Know About MBLY Stock
1. Based in Jerusalem, Israel, Mobileye Global makes autonomous driving technologies and advanced driver-assistance systems such as cameras, computer chips and software.
2. Intel acquired Mobileye Global in 2017 for $15.3 billion and controls 99.4% of the voting power at Mobileye.
3. As part of today’s IPO, Mobileye sold 41 million shares at $21 each. The company had marketed the shares to investors for $18 to $20 apiece.
4. The per-share IPO price gives Mobileye Global a market capitalization of $16.7 billion, which is below the $30 billion valuation the company sought earlier this year.
5. Mobileye comes to market as the fourth-biggest IPO of the year in the U.S. The IPO market has slowed considerably in 2022. So far in 2022, IPO volume in the U.S. has totaled $22.5 billion compared to $279 billion at the same point in 2021.
6. Intel Chief Executive Officer Pat Gelsinger has said he wants to capitalize on Mobileye’s business as the automotive sector moves toward self-driving vehicles.
7. Enthusiasm for today’s IPO might be dampened by poor earnings prints and lowered guidance at leading technology companies such as Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT).
8. Rumors of impending layoffs at Intel might also overshadow the IPO of Mobileye Global to some degree.
9. Mobileye said it will use the cash raised from its IPO for working capital and general corporate purposes. As of July this year, the company had $774 million of cash on hand.
10. Mobileye is not yet profitable. In the 12 months ended Dec. 25, 2021, the company had a net loss of $75 million on revenues of $1.39 billion.
On the date of publication, Joel Baglole held long positions in GOOGL and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
