Intel has made an initial public offering of its self-driving technology company, Mobileye Global Inc., braving the worst new US listing market since the financial crisis more than a decade ago.
The company did not disclose the terms of the planned share sale in its filing Friday with the U.S. Securities and Exchange Commission. According to the filing, Mobileye will continue to be controlled by Intel after the IPO.
Intel expects its IPO to value Mobileye at as much as $30 billion, less than originally hoped, Bloomberg News reported this month.
If the listing goes through this year, it would be one of the biggest U.S. offerings of 2022. Currently, only two companies have raised $1 billion or more on New York stock exchanges since January 1, compared to 45 in 2021. The share of U.S. IPOs has shrunk to less than one-seventh of the global total from half in 2021.
Mobileye was also set to follow in the footsteps of Porsche AG’s market-defying IPO in Frankfurt this week. That €9.4 billion ($9.2 billion) listing is the second largest this year and the largest since equity markets began their volatility and inflation-driven downward spiral in January.
Intel Chief Executive Officer Pat Gelsinger is trying to capitalize on Jerusalem-based Mobileye, which was acquired in 2017 for $15 billion, with a partial spin-off of its shares. Mobileye makes chips for cameras and driver assistance functions, and is seen as a valued asset as the automotive industry moves towards fully automated vehicles.
Now with approximately 3,100 employees, Mobileye has collected data from 8.6 billion miles on the road from eight test sites worldwide, according to the filing. the company says its technology leads the race to move the auto industry away from human drivers. It has shipped 117 million units of its EyeQ product.
Mobileye has been a particular bright spot for Intel and has consistently grown faster than its parent company. In July, it had $774 million in cash and cash equivalents. In the 12 months ended December 25, it had 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 pay off debt and for working capital and general corporate purposes.
Mobileye said in her filing that Gelsinger will serve as chairman on the board, along with former U.S. Senator Claire McCaskill, a Democrat from Missouri, and Jon Huntsman, the former Republican governor of Utah, as well as ambassador to China who is now at Ford Motor Co. ‘s plate.
In its filing, Mobileye noted that mobility and transportation company acquired Moovit from Intel this year. Moovit, another Israel-based company, was acquired by Intel in 2020 for $900 million.
A successful Mobileye listing could break the ice for a string of startups that have waited for the year’s market tumult to subside before going ahead with IPOs.
More specifically, it could clear a growing blockage of chip-related assets waiting to hit the market. SoftBank Group Corp. is also seeking shares of semiconductor designer Arm Ltd. early next year. to sell. Ampere Computing LLC, a startup that makes processors for data centers, is also planning an IPO.
The Mobileye offering is led by Goldman Sachs Group Inc. and Morgan Stanley. Mobileye plans to trade its shares on Nasdaq under the symbol MBLY.
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