Intel’s self-driving car unit Mobileye goes public
The nearly $17bn valuation of Mobileye is far below Intel’s earlier expectations for the IPO.
Read more: Intel’s self-driving car unit Mobileye goes public
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The nearly $17bn valuation of Mobileye is far below Intel’s earlier expectations for the IPO.
Read more: Intel’s self-driving car unit Mobileye goes public
Intel’s self-driving technology firm Mobileye has filed for an initial public offering (IPO), according to a filing with the Securities and Exchange Commission (via CNBC). The Israel-based company, which Intel acquired for $15.3 billion in 2017, specializes in making the chips and software that powers autonomous vehicles.
According to Bloomberg, Intel initially expected the IPO to value Mobileye at $50 billion, but later lowered its expectations to around $30 billion. Mobileye’s SEC filing indicates steady revenue growth over the past few years, jumping from $879 million in 2019 to $967 million in 2020, and topping out at $1.4 billion in 2021. The filing doesn’t provide any information on how much a share could cost.
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Intel Chief Executive Officer Pat Gelsinger is trying to capitalize on Jerusalem-based Mobileye, acquired in 2017 for $15 billion, with a partial spinoff of its shares. Mobileye makes chips for cameras and drive-assistance features, and is seen as a prized asset as the car industry races toward fully automated vehicles. Now with about 3,100 employees, Mobileye has collected data from 8.6 billion miles on the road from eight testing sites globally, according to its filing. The company says its technology leads in the race to shift the automotive industry away from human drivers. It’s shipped 117 million units of its EyeQ product.
Mobileye has been a particularly bright spot for Intel and has consistently grown faster than its parent. As of July, it had $774 million of cash and cash equivalents. In the 12 months ended Dec. 25, it had a net loss of $75 million on revenue of $1.39 billion. The company said it plans to use proceeds from the IPO to pay down debt and for working capital and general corporate purposes.
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Mobileye, the self-driving tech firm that Intel had purchased for $15.3 billion back in 2017, has filed for an IPO with the Securities and Exchange Commission. When Intel first announced its plans to take Mobileye public late last year, the autonomous driving firm was expected to have a valuation of over $50 billion. Now according to Bloomberg, Intel expects Mobileye to be valued at around $30 billion, due to soaring inflation rates and poor market conditions. Regardless, it’s still bound to become one of the biggest offerings in the US for 2022 if the listing takes place this year.
Intel intends to retain a majority stake in Mobileye, but Chief Executive Pat Gelsinger previously said that taking it public would give it the ability to grow more easily. He also said that the company plans to use some of the funds raised from the IPO to build more chip factories. Intel revealed its big and bold foundry ambitions in 2021 when it announced that the company is investing $20 billion in two Arizona fabrication plants. Back then, Gelsinger even proclaimed that he was pursuing Apple’s business. Earlier this year, the CEO revealed earmarking another $20 billion to build two fabrication plants in Columbus, Ohio. The company expects that facility to eventually become “the largest silicon manufacturing location on the planet.”
Mobileye didn’t specify how much a share would cost in its filing with the SEC. It did say, however, that it will use portion of the proceeds it will get from the IPO to pay debts. The firm also talked about its history in the filing and how its revenue grew from $879 million in 2019 to $1.4 billion in 2021, representing a growth of 43 percent year-over-year.