Intel Corp (NASDAQ: INTC) owned self-driving technology company Mobileye Global Inc (NASDAQ: MBLY) made its trading debut today.
Mobileye priced 41 million shares at $21 per share to raise $861 million after marketing the shares for $18 – $20.
A significant portion of the net proceeds from this offering will help to repay a note owed to Intel.
Mobileye intends to use the remaining net proceeds for working capital and general corporate purposes.
Private equity firm General Atlantic agreed to buy $100 million worth of shares in a private placement in conjunction with the IPO.
Intel scaled back expectations for its Mobileye initial public offering amid a broader stock recession.
The chipmaker and its advisers believed that selling fewer shares at a reduced price may generate increased interest in the IPO.
Mobileye had a market value of $16.7 billion at the IPO price, surpassing the $15.3 billion Intel paid for Mobileye in 2017 while still short of the $30 billion valuation the company had sought earlier.
Mobileye beat the broader technology index Nasdaq which traded lower by 1.47% at 11,034 on the last check today.
Price Action: MBLY shares traded higher by 28.45% at $26.98 on the last check Wednesday.
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Source: https://finance.yahoo.com/news/intels-self-driving-tech-company-175752612.html