Oct 24 (Reuters) – Intel Corp (INTC.O) chief executive Pat Gelsinger said on Monday the IPO of his self-driving technology company Mobileye was not a capital raise but rather a market entry.
“It’s a step towards potentially bringing them to market. It’s not a capital raise,” Gelsinger said at the WSJ Tech Live conference when asked why Intel is pushing an IPO in such a tough market environment and if Intel needs that money.
“The autonomous vehicle segment is a strong growth segment. It’s a tough market. At the same time, we believe this company should be publicly traded and that this is the best way to maximize the company’s potential,” Gelsinger said.
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He also said he believes self-driving cars could become commonplace on the roads by mid-decade.
Last week, Mobileye announced it was valuing nearly $16 billion when it went public
Mobileye announced in a regulatory filing that it is offering 41 million common shares at a price between $18 and $20 per share, with a goal of raising up to $820 million based on the high end of the proposed listing range.
Reuters, citing sources, reported in April that the IPO could value Mobileye at up to $50 billion.
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Reporting by Jane Lanhee Lee in Oakland, California and Eva Matthews in Bengaluru; Editing by David Gregorio
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