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Mobileye IPO was priced above the range

Mobileye IPO was priced above the range

. In a press statement, Mobileye stated that it had priced 41 million shares at 21 USD per share. The business has stated that the IPO may cost between 18 and 20 USD per share. The IPO puts Mobileye at 16.7 billion USD, significantly less than the 50 billion USD price that Intel had hoped for. Mobileye is only selling a 5% share, which is lower than the standard 10% to 20% investment for most IPOs. This reduces the financial impact of the company's decreased value.

U.S. IPOs, however, are experiencing one of their worst years on record, with traditional offers on course to generate the least money in almost two decades. The Renaissance IPO index, which tracks the largest and most liquid US IPOs, has fallen 51.4% this year, compared to a 19.54% decrease in the S&P 500 index. Wall Street's fear measure, the Cboe Volatility Index, is hanging around 29. VIX readings above 20 are often connected with increased investor concern about the stock market's near-term prospects.

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Comparison of performance between the Renaissance IPO index and S&P500 in the last five years.

(Source: Renaissancecapital)

Sources:

https://www.renaissancecapital.com/IPO-Investing/US-IPO-ETF-Index

https://www.bnnbloomberg.ca/mobileye-global-prices-ipo-above-range-to-raise-861-million-1.1837234

https://www.nasdaq.com/articles/intel-unit-mobileye-prices-ipo-above-range-to-raise-$861-mln-source

https://www.reuters.com/markets/asia/intel-unit-mobileye-prices-ipo-above-range-raise-861-mln-source-2022-10-25/#:~:text=NEW%20YORK%2C%20Oct%2025%20(Reuters,the%20company%20said%20on%20Tuesday.

https://www.investing.com/news/stock-market-news/intel-unit-mobileye-prices-ipo-above-range-to-raise-861-million-source-2921348