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Intel's Mobileye confidentially files for IPO

Intel's Mobileye confidentially files for IPO

The chip giant announced last December that it planned to take its self-driving-car unit public, a deal which could value the Israeli unit at more than $50 billion

Meir Orbach | 17:42  07.03.2022

Intel announced on Monday that Mobileye has confidentially submitted a draft registration statement with the U.S. Securities and Exchange Commission (SEC) for its proposed initial public offering. The number of shares to be offered and the price range for the proposed offering or any other details weren’t announced, with Intel adding that the initial public offering is expected to occur after the SEC completes its review process, subject to market and other conditions.

Intel announced last December that it plans to take the self-driving-car unit public in the United States in mid-2022, a deal which could value the Israeli unit at more than $50 billion.

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Chip giant Intel, the largest employer of Israel's high-tech industry with nearly 14,000 workers, expects to retain Mobileye's executive team and hold on to a majority ownership in the unit.

In a recent exclusive interview to Calcalist, Intel CEO Pat Gelsinger detailed the company’s plans for Mobileye.

"Preparations for the IPO continue at a fast pace, everything is done, work on the paperwork, the prospectus, and submitting what is needed. When everything is ready, then we will make the IPO and it will of course be based to some extent on market conditions at that point in time. We have consultants who say when is better and at what price, but I tell the team that handles the Mobileye issue - we do not stop for one second. The market may have fluctuated now, but who knows what will happen in a few months?"

What is more important for you, to split out Mobileye’s activity or maximize its value?

"I do not look at it that way. The value on the day of Mobileye’s IPO does not worry me. I want it to be a good IPO, but it will not be at the level of 'let's wait another week and maybe get another 5%.' We do the IPO because it's the right thing to do for Mobileye - they will have more visibility to customers, more currency to attract talent to work for the company. The electric car market is heating up and I want Mobileye to be a prominent player there. Creating value for Intel and Mobileye’s new shareholders is what matters. Intel will still hold most of the shares and I will be chairman of the company. We are fully invested in Mobileye’s success but I think it will be a greater success after the IPO. I do not worry about the value on the day of the issue."

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Even if it's less than the $50 billion you set as your goal?

"I do not think we will have to worry about that and that is a good number. I see this value rising dramatically over the next decade anyway. The market is hot, the technology is unique and it will be possible to both make purchases and recruit employees."

Will you complete the offering in any case by the end of the year?

"I am committed to completing Mobileye’s IPO by the end of 2022 and I see no reason why that should not happen."

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