INTC

Intel Corporation

29.41
USD
-1.41%
29.41
USD
-1.41%
24.59 56.28
52 weeks
52 weeks

Mkt Cap 119.32B

Shares Out 4.06B

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Intel Files IPO Plans for Its Mobileye Autonomous Driving Unit

Intel filed paperwork with the SEC late Friday for an initial public offering for its Mobileye Global unit, which makes chips and software for autonomous driving. Intel (ticker: INTC) acquired Jerusalem-based Mobileye for $15.7 billion in 2017. In March, Intel announced that it had filed confidentiality with the SEC for an IPO; the new public filing takes the process one step closer to a public offering. If completed this year, it could mark the end to a lengthy pause in the tech IPO market. Intel declined to comment on the timing of the IPO. There have been previous estimates that the Mobileye IPO could bring a valuation of as much as $50 billion, but Bloomberg this month reported that Intel had reduced its expectations for the company’s valuation to $30 billion, given the recent slide in tech share prices. The new filing does not specify the number of shares to be sold or the size of the offering, but it does say Mobileye will have two classes of stock, Class A and Class B, with Intel maintaining control of the company via sole ownership of supervoting Class B shares that carry 10 votes each. In the filing, Mobileye says that it is currently working with more than 50 auto makers on advanced driver assistance systems. The company said its technology has so far been deployed in over 117 million vehicles. Mobileye said it expects to be deployed in another 266 million vehicles by 2030, based on design wins through July 2. “We believe that we will be positioned to deliver an autonomous driving solution that can enable the mass adoption of AVs, including both Mobileye-powered robotaxis and consumer-owned autonomous driving vehicles,” CEO Amnon Shashua said in a letter to investors included in the filing. Mobileye had revenue for the first six months of 2022 of $854 million, a figure that was previously disclosed in Intel’s June quarter earnings report. For all of 2021, the company had revenue of $1.4 billion. For the six month period, Mobileye reported a $36 million operating loss, and a net loss of $67 million. The company notes that it supplies systems primarily through automotive system integrators, who account for most of its sales. In the 2022 first half, the German auto parts company ZF accounted for 43% of the company’s sales, with Valeo contributing 15%, and Aptiv 12%. Goldman Sachs and Morgan Stanley are leading the underwriting group for the deal.

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