Mobileye IPO benefits from some driver assistance

Mobileye IPO benefits from some driver assistance

Mobileye IPO benefits from some driver assistance

NEW YORK, Oct 26 (Reuters Breakingviews) — There’s nothing like setting low hopes. Doing this helped Mobileye (MBLY.O)the price of its shares Slightly above their indicated range, $21 a share, and jumped 38% on their market debut on Wednesday. Its parent company Intel, a manufacturer of components for driver-assistance systems (INTC.O) And two dozen underwriters slashed the original valuation target from the $50 billion to about $15 billion the chipmaker had originally paid to buy the company five years ago.

After a prolonged drought in initial public offerings, Mobileye’s deal offers a glimmer of hope for new stock sales. The path is unlikely to be cleared for many more, however, at least not anytime soon. Although Mobileye is unprofitable, its top line up 41% The three months ending July 2 compared to a nearly identical stretch a year ago. Autonomous driving is also a far cry from what the industry predicted, but vision technology is still essential for car manufacturers. Many other startups lack the same promise.

Amidst volatile markets and volatile economic conditions, only strong companies manage to go public. Still, Intel’s poor timing and outspoken attitude toward investors cost it a bunch of cash. It can use. And despite briefly leaving the IPO market open, the deal failed to win Intel any additional credit. Its shares fell marginally during the day. (by Jeffrey Goldfarb)

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Editing by Lauren Silva Laughlin and Sharon Lamo

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