© Stocksak. After ringing Mobileye Global Inc.’s opening bell, Professor Amnon Shashua (senior vice president at Intel Corporation) and Pat Gelsinger (Intel CEO), celebrate.
(Stocksak.) Shares of Mobileye Global Inc opened at 27% higher Wednesday. The self-driving tech unit of Mobileye Global Inc was valued at $27 million. Intel Corp (NASDAQ: ) At $21.3 Billion, investors swarmed in what could be the final big IPO of 2022.
The strong reception for Israel-based company is in contrast to recent market debuts where investors have been reluctant to list new companies.
Analysts also pointed out that Mobileye’s financial strength attracted investors who are selective in light of economic challenges.
“Investors now place greater focus on companies’ free cash flows, revenues/profitability or path-to-profitability, over just growth projections,” said Paul Go, global IPO leader at EY.
Mobileye’s debut is coming after a turbulent period where it managed to achieve only a third of its $50 billion valuation earlier in its IPO.
The U.S. IPO market is still in limbo. Stocksak reported last Wednesday that Instacart, a grocery delivery service, has pulled its listing plans. Reddit however, a social media giant, had confidentially filed for an IPO in December but has not shown any signs of moving forward.
“The reopening the IPO window will still be dependent on returns improving and volatility settling,” stated Avery Spear, senior data analyst at Renaissance Capital.
Mobileye was listed on the New York Stock Exchange since 2014, before it was acquired by Intel in a $15.3 Billion deal in 2017.
Mobileye is a developer of autonomous driving technologies. It competes with Alphabet Inc (NASDAQ:) Inc’s Waymo, General Motors Co. (NYSE:)’s Cruise, and other automakers that have made the transition to in-house design of driving assistance technology.
The IPO price of $21 per share was exceeded by shares opening at $26.71 each.
Mobileye was worth $16.7 billion on Tuesday after it sold shares that were above its marketed range of $18-20 to raise $861 million.
Goldman Sachs & Co (NYSE:) and Morgan Stanley (NYSE:) is the leading underwriter for the IPO.