Intel Corp’s self-driving car unit Mobileye confidentially filed for an initial public offering in the United States on Monday
see photosThe Mobileye logo is seen during the Munich Auto Show, IAA Mobility 2021 in Munich, Germany
(Reuters) – Intel Corp’s self-driving car unit Mobileye on Monday confidentially filed for an initial public offering in the United States in what is expected to be one of the biggest stock market floatations of the year. The move to list Mobileye is part of Intel’s broader strategy under Chief Executive Officer Pat Gelsinger to turn around its core business. Investors have bet big on new technologies in the global transportation business over the past few years, and Intel aims to take advantage of demand for autonomous vehicles by listing shares of Mobileye.
Technology-powered driverless cars are also gaining traction among older automakers such as Ford Motor Co., General Motors Co. and Toyota Motor Corp., who are investing in models with features like driver-assistance and self-driving systems.
Intel, however, is looking to test the capital markets at a time when investor interest in IPOs has waned significantly due to recent stock market volatility, including rate hikes and fears of geopolitical tensions. Is.
According to Dealogic, traditional US IPOs have raised about $2.33 billion since the beginning of the year, compared to $26.67 billion during the same period last year. In recent weeks, several companies have postponed or canceled their plans to go public.
blockbuster deal
Intel did not disclose further details about the IPO, but had previously said it would receive most of the proceeds from the share sale. Some of those funds will be used to build more Intel chip plants, Gelsinger said in December.
The chip giant will also retain majority stake in the entity after the IPO, it had said earlier. In December, Reuters and other media outlets reported that the IPO could value Mobileye at more than $50 billion, although Mobileye may now struggle to achieve a similar valuation given recent market volatility, in this case. Familiar people said.
Mobileye, an Israeli company that Intel bought in 2017 for about $15.3 billion, uses a camera-based system with adaptive cruise control and lane change assist in driverless cars.
The company, founded in 1999, plans to eventually build its own “lidar” sensor to help its cars map a three-dimensional view of the road. It is currently using Luminar Technologies’ lidar units on its initial robotaxis in the meantime.
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.
Gelsinger has been under active investor pressure to consider shutting down Intel’s chip operations, but the company still plans to invest billions in the US to expand its chip-manufacturing capacity and grow its market share. Is.
By Niket Nishant and Anirban Sen
(Reporting by Niket Nishant, Nivedita Balu and Manya Saini in Bengaluru; Editing by Vinay Dwivedi and Amy Caron Daniels)
0 notes
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
for the latest auto news And WaitFollow carandbike.com Twitter, Facebookand subscribe to us youtube Channel.