Intel's Mobileye unit set for strong market debut

Shares of Mobileye Global Inc were set to open 20% higher on Wednesday, potentially valuing the self-driving technology unit of Intel Corp at nearly $20 billion.

 Professor Amnon Shashua, president and chief executive officer of Mobileye, speaks with Intel CEO Pat Gelsinger before ringing the opening bell for Mobileye Global Inc, at Times Square in New York City, U.S., October 26, 2022. (photo credit: REUTERS/SHANNON STAPLETON)
Professor Amnon Shashua, president and chief executive officer of Mobileye, speaks with Intel CEO Pat Gelsinger before ringing the opening bell for Mobileye Global Inc, at Times Square in New York City, U.S., October 26, 2022.
(photo credit: REUTERS/SHANNON STAPLETON)

Shares of Mobileye Global Inc were set to open 20% higher on Wednesday, potentially valuing the self-driving technology unit of Intel Corp at nearly $20 billion after the IPO was priced above the anticipated range.

At 10:31 am Eastern Time, the shares were indicated to open at $25.05, up from the initial public offering price of $21 per share.

The upbeat showing comes when technology stocks have come under pressure following downbeat earnings reports from Microsoft Corp and Google parent Alphabet Inc.

Mobileye's strong debut

Mobileye's strong reception may buck the trend of recent market debuts where investors have given the cold shoulder to newly-listed companies.

Though the Israel-based company was valued much lower than the $50 billion it was seeking earlier in an IPO, it sold only a 5% stake in itself, limiting the financial hit.

A general view of a Mobileye autonomous driving test vehicle, at the Mobileye headquarters in Jerusalem (credit: REUTERS/Ronen Zvulun)A general view of a Mobileye autonomous driving test vehicle, at the Mobileye headquarters in Jerusalem (credit: REUTERS/Ronen Zvulun)

Typically, companies looking for an IPO sell about 10% to 20% of their stake.

On Tuesday, Mobileye was valued at $16.7 billion after selling shares above the marketed range of $18 to $20, to raise $861 million.

Goldman Sachs & Co and Morgan Stanley are the lead underwriters for Mobileye's IPO.