Intel self-driving subsidiary Mobileye is targeting a $15.9 billion IPO
Shares are expected to be priced anywhere between $18 and $20 each.
In a recent filing from Intel on Tuesday, it was revealed that the company’s self-driving subsidiary Mobileye is targeting an IPO valued at almost $16 billion with share prices expected to fall anywhere from $18 and $20 each.
Shares of Mobileye will be traded on Nasdaq, with Intel aiming to raise upwards of $820 million for “working capital and corporate purposes” according to its filing. Intel will retain control of Mobileye in the process, and will hold over 750 million shares of Class B stock. Meanwhile, investors will be able to purchase Class A stock.
Intel currently projects there to be over 796 million outstanding shares of Mobileye in total which, when sold at $20 each, could end up giving Mobileye a valuation of $15.9 billion. Surprisingly, this valuation is actually lower than initial reports had suggested, with CNBC noting that this could be a sign that the IPO market has cooled with rising interest rates and investors preparing for a “potential recession.” Furthermore, Nasdaq where Mobileye shares will be traded is currently down over 30 percent this year.
For those unfamiliar, Intel purchased Mobileye back in 2017 for $15.3 billion, with Mobileye having been founded all the way back in 1999. It has since become known for building components such as chips, hardware, and software for self-driving cars along with safety features like driver assistance and lane-assist technology.
As noted in the filing, Mobileye holds partnerships with a variety of automotive manufacturers including Audi, BMW, and Volkswagen, with its self-driving tech present in over 800 vehicle models. Following news of the filing, Intel stock fell by over 2 percent.
For more on Intel targeting a Mobileye IPO valued at nearly $16 million, be sure to read through reports from outlets like CNBC. And for more Intel news, check out some of our previous coverage including Intel (INTC) stock dropping 11 percent on lowered revenue and earnings guidance, and AMD surpassing Intel (INTC) in market capitalization.
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replyMorgan Shaver posted a new article, Intel self-driving subsidiary Mobileye is targeting a $15.9 billion IPO
