By Robb M. Stewart

 

Intel Corp.'s self-driving-car unit, Mobileye Global Inc., expects a market valuation of roughly $15 billion at the projected pricing midpoint of its initial public offering.

In a prospectus filed with regulators, Mobileye said it plans to offer 41 million class A shares at a projected price of $18 to $21 apiece. The underwriters of the IPO have a 30-day option to up to about 6.2 million additional shares.

Cornerstone investors Baillie Gifford and Norges Bank Investment Management have each indicated an interest in buying up to a total of $330 million of the A shares at the IPO price, and company Chief Executive Officer Amnon Shashua indicated an interest in purchasing up to $10 million of the shares, Mobileye said.

General Atlantic LP has agreed to buy $100 million of Mobileye's A shares at the offering price or about 5.3 million shares at an assumed price of $19 a share.

After the IPO, the company said it expects to have about outstanding 46.3 million A shares.

At the expected $19 a share midpoint of the IPO's pricing, Mobileye said it expects net proceeds from the offering of about $800 million, or $900 million if the underwriters' option is exercised in full.

Earlier, The Wall Street Journal reported that Mobileye, which was originally expected to land a roughly $50 billion valuation, was set to target one that is under $20 billion and sell a smaller number of shares than originally planned.

Intel Chief Executive Pat Gelsinger has said that listing Mobileye would give the self-driving-car unit a higher profile and attract more business. He has also said Intel doesn't need the money Mobileye's IPO would generate.

Intel will retain a large stake in Mobileye, including all of the class B shares Mobileye plans to issue, with each B share having voting rights equivalent to 10 A shares. Immediately following the completion of the offering, Intel's hold on the B shares is expected to represent a little over 99% of the voting power, according to the prospectus.

The company, which recorded revenue of about $1.4 billion in 2021, said it has applied to list the A shares on Nasdaq under the symbol MBLY.

 

Write to Robb M. Stewart at robb.stewart@wsj.com

 

(END) Dow Jones Newswires

October 18, 2022 07:26 ET (11:26 GMT)

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