After months of no updates, it appears that Intel is officially postponing the Mobileye IPO.
Intel and Mobileye announced last December that they planned to take the self-driving car unit public in mid-2022. However, according to a letter sent to Mobileye employees, it looks like this will not happen.
Part of the letter from Mobileye Founder and CEO Amnon Shashua reads:
The issue is the “market condition”. I do not need to tell you about the status of the stock market – you all see it for yourselves. The problem with the “bad market condition” is not valuation but stability. Regarding valuation, we will do our IPO at the valuation which commensurate with the market. Valuation is not the reason to wait. Lack of stability, or high volatility, on the other hand, could have a negative affect on the results of any IPO, both on the date of the IPO and going forward. I believe that achieving the target of a successful IPO, and sustaining such success for the long term, requires us to wait for the market to stabilize. We still hope it will happen during 2022. This is all there is to it. In the meantime, our business is thriving, we are growing on all fronts and the future was never brighter. (via CTech)
Even with this delay, not much changes for Mobileye in terms of day-to-day operations.
The company will continue to operate, but will need to continue to rely on its current income.
However, they have backing from Intel, and Intel seems to be in no rush to get cash. Instead, they appear to want to wait for the right time, which is an excellent position to be in instead of rushing ahead with plans to go public.
