Intel brought Mobileye to IPO and raised $861 million for 5% stake, retaining all Class B shares

Intel was able to successfully conduct a public offering of Israeli startup Mobileye, which develops driver assistance systems.

Here's What We Know

Intel placed 41 million shares of Mobileye at $21 per share, $1-3 more than originally planned. As a result, the American company was able to get $861 million instead of $820 million, selling only 5% of the shares instead of the standard 10-20%. The main IPO subscribers were one of the largest investment banks, Goldman Sachs and financial conglomerate Morgan Stanley.

Intel will retain all of its Class B shares. They provide an order of magnitude more votes than class A securities, which were released to the U.S. stock market. According to officially unconfirmed information, financial consultants insisted that Intel would only part with 5 percent of the shares in the IPO, as a massive issue of shares would have negatively affected the company's value.

Mobileye now has a market capitalization of $16.7 billion, which is $0.8 billion above the planned $15.9 billion. However, it should not be forgotten that Intel paid $15.3 billion for the Israeli company five years ago and planned to increase its value to $50 billion.

Source: Reuters

Image: Intel