This week, the Intel company's Israeli company, Mobileye, will present its prospectus to investors in preparation for a public stock launch scheduled for October 26, and the current business owners are prepared to estimate the capitalization of Mobileye into more modest $20 billion compared to the original $50 billion, given the poor investment climate.
In fact, according to The Wall Street Journal, with reference to information sources, Mobileye now estimates its capitalization at less than $20 billion, while at the same time it is going to release fewer shares to the stock market than planned. Consultants who helped Intel prepare for this IPO recommended that the parent corporation raise interest in the Mobileye assets, calculated to further increase the exchange rate value of the shares.
In any case, Intel will retain all of the privileged class B shares in the IPO, which in strategic decision-making generate ten times more votes than the class A shares that will enter the stock market. In the plan of Intel Director General Patrick Gelsinger, Mobileye's entry into the IPO will allow the company to strengthen market power and attract new customers. In the money from the public company, according to Intel, it's not very interested. However, looking at the third quarter's not the most successful outcome, you can question the sincerity of these words.
According to Dealogic, this year's stock market has been one of the worst in the US stock market since the mid-1990s, most companies that have been on IPO in the previous two years have been able to place themselves at lower prices than expected, many American issuers are now looking for alternatives to the planned public stock placement this year. They either have to accept more modest private investment, or reduce costs with some staff, or close separate lines of activity in the context of forced restructuring.
Some issuers would prefer to hold the IPO until next year, waiting for more favourable conditions. For Mobileye, this would be the second public offering, since during the first time in 2014 it reached a capitalization of $5 billion three years later it bought $15.3 billion for Intel. In the first six months of this year, Mobileye raised $854 million, an increase of 20% over the previous year, but it still failed to avoid net losses of $67 million.