Amnon Shashua, founder and CEO of Mobileye, refers for the first time to the largest Israeli IPO in history, after it was announced today (Wednesday) that the Israeli company Mobileye will be issued and will begin trading today on the American Stock Exchange at a value of NIS 16.7 billion.
"We are happy that we went public," said Shashua this evening.
"Employees who have Intel shares will still have Intel shares. This story that we have the currency, I am satisfied and the employees are satisfied, but this is not the main reason for the IPO. This is a secondary reason. Mobilya had no problem attracting strong employees. When we have this currency, It's better. What attracted us is the public eye. We want to communicate through the analysts and more. For the last five years we've been under the radar. We've reported the revenue and that's it. It's time to start showing the world what we've done and get attention. The state of the markets didn't deter us. We said we'd go public And we will build the value.'
Mobileye issue, photo: Nasdaq, Inc
Shashua referred to Intel's plans and said "Intel owns 94% of the company. If Intel wants to sell, that's Intel's business. All that was issued is 6% of the company. It's not that Intel sold Mobileye for that amount. It's only 6%. I guess there will be liquidation later, but This is not our business. We went up by 30% at the opening of trading. The road show was very successful. There is a very strong interest of investors in the company. This is a very special company. We received compliments from many investors and I met with hundreds of investors. It is time to return to the public eye."
Shashua also added: "I had no problem running the company independently. I did it without interference in the last five years with Intel. But no one threw hoops at me. It was the best time, when we got help, employees and developed special radars. That's all "Intel technology. We acquired Mobit and now is the time to return to the public eye."
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To Israel Hayom's question whether the autonomous vehicle market is developing at a satisfactory rate for them, Shashua answered: "Yes, when you talk about an autonomous vehicle, you think of an Uber-like vehicle without a driver, but this is the upper end. Over the past five years, we have built a spectrum of solutions and started providing them. It started with a system of 11 cameras and we supplied 50,000 such systems in China. We have 6 more car manufacturers between 2023-2025. There is a desire in the industry to adopt this. You can add active sensors and produce autonomous systems, as the range is increasing. You can only give a system to a fast lane, It is possible to change lanes in light traffic and change lanes in dense traffic and make turns without a traffic light. Once we have finished everything, there is an autonomous vehicle that is able to travel anywhere and on all roads. This is a spectrum of solutions and the industry is getting harnessed in this direction. In the last five months, we have made a large adoption of our solutions. As mentioned, there are 11 cameras in 6 car manufacturers and we supplied 50,000 vehicles in China.In 2023 and 2026, vehicles with these solutions will come out.'
Mobileye IPO on Nasdaq, photo: Nasdaq, Inc
We note that Mobileye managed to raise 861 million dollars at a price of 21 dollars per share, above the forecast range of the prospectus which was 18-20 dollars.
This is the largest Israeli IPO in history.
The shares will be traded on Nasdaq under the name "MBLY". Originally the plan was to issue the autonomous vehicle company at a value of 50 billion dollars, but in recent weeks Intel announced that the issue will be for a much smaller amount.
Intel itself purchased Mobileye for 15.3 billion dollars in 2017 and planned to improve the value of the company's shares in the years that passed since the purchase. At the end of 2021, the plan was to issue it at a value of 50 billion dollars.
Following this gap in value, much less Mobileye shares will also be sold, contrary to Intel's initial plans.
It is important to note that this is not precisely the disappointment of the investors from the company Mobileye, but rather a real drought in the market for the issuance of technology stocks.
Intel itself is suffering from a profit problem and is expected to report tomorrow on a decrease in revenues in the third quarter of this year.
The decrease in profits is still related to the problems that exist in the supply chain in the technology market, problems that have accompanied the market since the outbreak of the corona crisis in China.
Beyond that, the decline in the sale of personal computers in the world directly affected the company that deals a lot in the production of chips for such computers.
According to reports, in light of this, the company plans to keep most of the profits from the sale of Mobileye shares, in-house for the purpose of building additional chip factories.
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