The move to take Mobileye public is part of Intel’s broader strategy under Chief Executive Officer Pat Gelsinger to transform its core business.
The move to take Mobileye public is part of Intel’s broader strategy under Chief Executive Officer Pat Gelsinger to transform its core business.
Intel Corp.’s self-driving car unit, Mobileye, confidentially filed for an IPO in the United States on Monday, setting the stage for what is expected to be one of the largest IPOs of the year.
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The move to take Mobileye public is part of Intel’s broader strategy under Chief Executive Officer Pat Gelsinger to transform its core business.
Investors have been making big bets on new technologies in the global transportation business in recent years, and Intel intends to capitalize on the demand for autonomous vehicles by listing Mobileye shares.
The technology powering driverless cars has gained traction even with older automakers like Ford Motor Co, General Motors Co and Toyota Motor Corp investing in models with features like driver assistance and self-driving systems.
However, Intel is trying to test the capital markets at a time when recent stock market volatility amid fears of looming interest rate hikes and geopolitical tensions has significantly reduced investor interest in IPOs.
Traditional U.S. IPOs have raised about $2.33 billion since the beginning of the year, compared to $26.67 billion for the same period last year, according to Dealogic. In recent weeks, several companies have postponed or scrapped their IPO plans.
blockbuster deal
Intel didn’t provide any further details about the IPO, but had previously said it would receive the bulk of the proceeds from the share sale. Some of these funds will be used to build more Intel chip factories, Gelsinger said in December.
The chip giant will retain a majority stake in the unit after the IPO, it said earlier. In December, Reuters and other media reported that the IPO could value Mobileye at more than $50 billion, although Mobileye may struggle to obtain the same valuation given recent market volatility, people familiar with the matter said.
Mobileye, an Israeli company that bought Intel for about $15.3 billion in 2017, uses a camera-based system with adaptive cruise control and lane change assist in driverless cars.
Founded in 1999, the company plans to eventually build its own “lidar” sensor to help its cars create a three-dimensional view of the road. It is now using Luminar Technologies lidar units on its first robotaxis.
Mobileye, which counts BMW, Audi, Volkswagen, Nissan, Honda and General Motors among its customers, was a bright spot for Intel, which faces stiff competition from rivals Nvidia Corp and Qualcomm Inc in the chipmaking segment.
Gelsinger has been pressured by activist investors to consider spinning off Intel’s chip business, but the company still plans to invest billions to expand its U.S. chip manufacturing capacity and increase its market share.
