Report: Mobileye Planning Largest IPO In Israel’s History, At $3.5-5B Valuation

By Avner Meyrav, NoCamels May 19, 2014 2 minutes

It’s often claimed that Israeli startups are only in pursuit of a quick exit. However, a recent wave of multi-million dollar IPOs by Israeli startups puts a dent in that stereotype.

A hot ticket in the Israeli IPO rumor mill is Mobileye, which, according to the Wall Street Journal, is trying to raise $1 billion on NYSE at a company value of up to $5 billion.

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Mobileye, founded in 1999, develops “smart vision” technology for cars, which is used for accident prevention and, in the future, autonomous driving. The company has shown great promise in the field, signing deals with automotive companies such as Audi and Volvo and is reportedly working on a driverless car with Tesla Motors. Last year, the company raised $400 million at a company value of $1.5 billion.

According to the WSJ, the company made a confidential filing with the SEC and may go on a roadshow to secure investors as early as July. According to the report, Mobileye will try to raise as much as $1 billion, at a company value of $3.5-5 billion. By doing so, the company’s IPO might prove to be the biggest ever by an Israeli technology company, surpassing recent offering holders, such as Wix and Evogene.

Mobileye was established by Professor Amnon Shashua and Ziv Aviram, both of whom are set to put their 10 percent stock holding in Mobileye on the market as part of the massive IPO offering.

The driving assistance and accident prevention system developed by Shashua is the first of its kind to be introduced to the world of automobiles. Shashua’s unique system utilizes cameras capable of “artificial vision.” Mobileye’s hold on an increasingly lucrative field in the automobile industry has helped push forward its profits steadily, with a number of luxury and family car manufacturers, like BMW and General Motors, integrating the company’s technology as a feature in their latest models.

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The company plans to begin developing other automobile-related technologies, such as automatic driving capabilities. According to reports issued last month, Mobileye joined in the development of the Tesla Motors’s electrical car that will be able to drive on its own using five cameras, two in the front, one in the back and two on the sides, which will be synchronized with the vehicle’s navigation system.

The breakthrough technology has been tested on Opel, Audi, Toyota and Nissan vehicles, but it is still unclear when it will be fully integrated into the automobile market.

Mobileye’s spokesperson declined to comment on the IPO reports.

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Photo: Mobileye on Facebook