NEW YORK (TheStreet) -- Mobileye (MBLY), a market leader in software that gives drivers alerts on collisions, lane changes and oncoming pedestrians, hopes to win the race to develop an 'autonomous' or 'driverless' car in the wake of its initial public offering on Friday.
Jerusalem-based Mobileye sold 35.6 million shares for $25 each, raising $890 million in its listing on the New York Stock Exchange. The offering priced above Mobileye's $21-to-$23 a share range and is the largest-ever U.S. IPO of an Israeli company. Mobileye's stock surged 48% to $37 a share in the company's first day of trading.
Mobileye expects to continue pioneering the market for advanced driver assistance systems (ADAS) after its technologies have been adopted by premium automakers such as BMW, Audi, Jaguar Land Rover and Tesla (TSLA), in addition to mass market carmakers like Ford (F), Honda (HON) and Nissan.
The company also believes its radar, sensor, microchip and camera technologies will allow it be the first to develop a semi-autonomous driving car at highway speeds. Mobileye is designing the first system for hands-free driving at highway speeds with two automakers, which it expects to launch in 2016.
Mobileye also expects to launch its autonomous driving system with six more automakers by 2018. Two other innovations, autonomous driving for country roads and city traffic, are forecast by the company launch as early as 2018. As with its ADAS systems, Mobileye believes its autonomous driving software will begin with premium car models and then filter into mass market models.