Stock market floatation could be worth as much as $50 billion to Mobileye.
Intel Corp.’s Mobileye has tapped investment banks Goldman Sachs Group Inc. and Morgan Stanley to lead preparations for the self-driving car unit’s initial public offering, according to three people familiar with the matter.
The stock market floatation, which is set to launch later this year, could value Mobileye at up to $50 billion, sources said, adding that the timing, valuation and size of the IPO is subject to market conditions.
The amount to be raised in the IPO could not be ascertained and the sources requested anonymity as the details of the preparation of the IPO are confidential.
Representatives for Intel and Mobileye did not respond to requests for comment. Morgan Stanley and Goldman Sachs declined to comment.
Mobileye’s preparation is coming at a tough time for the IPO market. A sell-off in technology stocks and volatility in the stock market caused by Russia’s invasion of Ukraine have forced several high-profile firms, including Gopf and Chobani, to postpone their plans to go public this year.
The IPO freeze followed a record-breaking 2021, with more than $300 billion raised through flotation.
According to Dealogic, so far this year, only 21 companies, excluding listings of special purpose acquisition companies, have been listed on US exchanges. Other major IPOs preparing for listing this year include the SoftBank-owned chip design arm and social media platform Reddit.
Intel bought Mobileye in 2017 for about $15.3 billion. The Israeli company uses a camera-based system with adaptive cruise control and lane change assist in driverless cars. Founded in 1999, Mobileye eventually plans to build its own lidar sensor to help its cars map a three-dimensional view of the road.
Mobileye, which counts BMW, Audi, Volkswagen, Nissan, Honda and General Motors as its customers, has been a bright spot for Intel, which faces stiff competition in the chip-making segment from rivals Nvidia Corp and Qualcomm Inc. does.
The decision to list Mobileye is part of Intel’s broader strategy under Chief Executive Officer Pat Gelsinger to turn around its core business. Gelsinger said in December that Intel expected to generate most of the proceeds from the share sale and use some of the money to build more Intel chip plants.
Intel has said that it will retain a majority stake in Mobileye after the IPO.
(Reporting by Crystal Hu in New York and Anirban Sen in Bengaluru; Additional reporting by Iko Wang; Editing by Bernard Orr)
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