Mobileye (MBLY) shares jump 30% on IPO's market debut
The IPO for Mobileye raised Intel $861 million, with Mobileye stock up 34 percent at $21 per share.
Intel (INTC) first announced back in December of 2021 that it planned to spin out its subsidiary Mobileye (MBLY) in the future, with Intel having purchased the company in 2017. Now, Mobileye has made its market debut and its initial public offering (IPO) has raised Intel a sizable $861 million in the process.
Additionally, Mobileye (MBLY) stock jumped during its market debut, with CNN reporting shares up 34 percent. As previously mentioned, Mobileye was originally purchased by Intel for $15.3 billion in 2017, with Intel seeing minimal returns on that investment thus far with Mobileye’s price of $21 per share valuing it at $17 billion.
“Mobileye’s market cap is far below Intel’s earlier expectations, the latest sign that tech investors have cooled on IPOs and have readjusted their valuations from the frothy days of the past half-decade as interest rates rise and the economy slows,” CNBC reports.
Also noted by CNBC, MBLY stock rose to $27.85 a share during its first day of trading. In our previous coverage, we noted that Intel will retain control of Mobileye despite its IPO debut, with Intel holding over 750 million shares of Class B stock.
Intel also has plans to use funds from Mobileye’s listing to build new factories for semiconductor chip manufacturing “as it embarks on a capital-intensive process to become a foundry for other chipmakers.” Following Mobileye’s IPO debut, Intel shares were down slightly at just under 1 percent.
For more Intel and Mobileye news, be sure to read through some of our previous coverage including Intel self-driving subsidiary Mobileye initially targeting a $15.9 billion IPO, and AMD surpassing Intel (INTC) in market capitalization back in August.
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replyMorgan Shaver posted a new article, Mobileye (MBLY) shares jump 30% on IPO's market debut
