Jerusalem-based Mobileye, which makes camera systems that help cars detect and prevent potential accidents, sold 35.6 million shares priced at $25 a share during its Friday initial public offering, above the offered price of $21 to $23. The shares soared 48% to $37 that day. The IPO raised $890 million, the largest ever for an Israeli IPO. According to Mobileye’s prospectus, it will use some of the IPO net proceeds to purchase inventory.
In 2013, Mobileye earned $81.2 million, more than double the $40.3 million earned in 2012. The company said in its prospectus, however, that it has “a history of losses,” and “there is no assurance that we will become and remain profitable.” Additionally, the prospectus noted that Mobileye has “a material weakness in our internal control over financial reporting, which resulted in the restatement of our 2013 earnings per share.”
Mobileye’s investors include Goldman Sachs (GS), Fidelity Investments, and BlackRock (BLK). Its biggest client is General Motors (GM), which accounted for 29% of revenue from original equipment manufacturing (OEM) in 2013. Honda (HMC) accounted for 25% of OEM revenues, and BMW and Nissan each accounted for 15%. Tesla (TSLA) is also a Mobileye customer. OEM revenues make up more than three quarters of Mobileye's total revenues.