The amount to be raised as part of the IPO has not been revealed and the sources have asked not to be identified as the details of the preparations for the IPO are confidential.
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| Published: 4/26/22 6:24 PM IST
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Mobileye by Intel Corp. has hired investment banks Goldman Sachs Group Inc and Morgan Stanley to lead preparations for the IPO of the self-driving car unit, according to three people familiar with the matter.
The IPO, set to begin later this year, could value Mobileye at up to $50 billion, the sources said, warning that the timing, valuation and size of the IPO are subject to market conditions.
The amount to be raised as part of the IPO has not been revealed and the sources have asked not to be identified as the details of the preparations for the IPO are confidential.
Intel and Mobileye representatives did not respond to requests for comment. Morgan Stanley and Goldman Sachs declined to comment.
Mobileye’s preparation comes at a difficult time for the IPO market. Volatility in stock markets, sparked by a sell-off in tech stocks and Russia’s invasion of Ukraine, has forced several high-profile companies, including GoPuff and Chobani, to postpone their IPO plans this year.
The IPO freeze followed a record-breaking 2021 in which more than $300 billion was raised through IPOs.
According to Dealogic, only 21 companies have been listed on US stock exchanges so far this year, excluding listings by special purpose entities. Other big IPO hopes preparing for a listing this year include SoftBank-developed Chip Arm and social media platform Reddit.
Intel bought Mobileye for around $15.3 billion in 2017. The Israeli company uses a camera-based system with adaptive cruise control and lane change assistant in driverless cars. Founded in 1999, Mobileye plans to eventually build its own lidar sensor to help its cars create a three-dimensional view of the road.
Mobileye, which counts BMW, Audi, Volkswagen, Nissan, Honda and General Motors among its customers, was a bright spot for Intel, which faces stiff competition from rivals Nvidia Corp and Qualcomm Inc in the chipmaking segment.
The decision to take Mobileye public is part of Intel’s broader strategy under Chief Executive Officer Pat Gelsinger to transform its core business. Intel expects to receive most of the proceeds from the stock sale and use some of the funds to build more Intel chip factories, Gelsinger said in December.
Intel has announced that it will retain a majority stake in Mobileye after the IPO.
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(This story was not edited by NDTV staff and is auto-generated from a syndicated feed.)
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