NEW YORK -- Shares of Mobileye are soaring on the Israeli car technology company's first day of public trading amid strong investor demand.
Mobileye priced 36 million shares at $25 each, above an expected range of $21 to $23, bringing in $900 million at a valuation that exceeded $5 billion. The 15-year-old company makes camera-based systems designed to help reduce the risk of accidents by anticipating collisions with other vehicles, pedestrians or bicycles. Its products also detect roadway markings and they can read traffic signs and lights, according to the company's initial public offering prospectus.
The company's prospectus lists Tesla, Audi, BMW, GM, Mitsubishi, Volvo and several other automakers as partners, and the Israeli press has reported that Mobileye and Tesla have teamed up on driverless cars.
"We also think it is probable that Tesla is working with Mobileye on driverless automation in its vehicles," said Andrea James of Dougherty & Co. in a recent note.
"We can simply confirm that we have a business relationship with them," Simon Sproule, Tesla's VP of Communications, said in response to an email asking how to best characterize the relationship. "Nothing further to add."
Mobileye estimates that its technology will be available in 160 car models from 18 manufacturers worldwide by the end of 2014.
The stock is listed on the New York Stock Exchange under the symbol MBLY. On Friday, the stock jumped $13, or 52 percent, to $38 in late morning trading.
The Associated Press and Mercury News staff writer Dana Hull contributed to this report.