Intel filed for an initial public offering of its self-driving technology business, Mobileye Global Inc., weathering the worst market for new US listings since the financial crisis more than a decade previous century.
The company did not disclose the terms of the planned share sale in submit Friday with the US Securities and Exchange Commission. Mobileye will continue to be controlled by Intel after the IPO, according to the filing.
Bloomberg news agency reported this month that Intel expects the IPO to value Mobileye at up to $30 billion, less than initial expectations.
If the listing takes place this year, it will be one of the largest US offerings in 2022. Currently, only two companies have raised $1 billion or more on exchanges. in New York as of January 1, compared with 45 in 2021. This year, the US IPO Market Share has fallen to less than a seventh of the global total from half in 2021.
Mobileye will also follow the market-challenging IPO of Porsche AG in Frankfurt this week. The list of 9.4 billion euros ($9.2 billion) that’s the list of the world second largest this year and the biggest since the stock markets started their volatile and inflationary downward spiral in January.
Intel CEO Pat Gelsinger is trying to capitalize on Jerusalem-based Mobileye, which was acquired in 2017 for $15 billion, with a portion of the company’s stock. Mobileye makes chips for cameras and driver-assist features, and is seen as a prized asset as the auto industry races to fully autonomous vehicles.
Now with about 3,100 employees, Mobileye has collected data from 8.6 billion miles on the road from eight test sites around the globe, according to its filing. The company says its technology is at the forefront of the race to move the auto industry away from human drivers. It shipped 117 million units of its EyeQ products.
Mobileye is a particular bright spot for Intel and is constantly outgrowing its parent company. As of July, it had $774 million in cash and cash equivalents. For the 12 months ended December 25, it posted a net loss of $75 million on revenue of $1.39 billion.
The company said it plans to use the proceeds from the IPO to repay debt and for working capital and general corporate purposes.
Mobileye said in its filing that its board will include Gelsinger as chairman, and former U.S. Senator Claire McCaskill, a Missouri Democrat, and Jon Hunterformer Republican governor of Utah as well as ambassador to China, who is currently Ford Motor The Board of Directors of Co.
In its filing, Mobileye noted that it acquired the Moovit mobile and transportation business from Intel this year. Moovit, another business based in Israel, was acquired by Intel for $900 million in 2020.
The successful listing of Mobileye could break the ice for a host of startups that are waiting for the year’s market volatility to ease before heading for an IPO.
More specifically, it can clear a growing logjam of chip-related assets waiting to hit the market. SoftBank Corporation Corp is also trying to sell a stake in semiconductor designer Arm Ltd. early next year. Ampere Computing LLC, a startup that makes processors for data centers, is also planning an IPO.
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