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Intel’s Mobileye files confidential filing for U.S. IPO

The Mobileye logo is seen during the Munich auto show, IAA Mobility 2021, in Munich, Germany, September 7, 2021. REUTERS/Wolfgang Rattay

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March 7 (Reuters) – Intel Corp’s self-driving car unit Mobileye filed a confidential U.S. IPO application on Monday, paving the way for what is expected to be one of the biggest IPOs ever. scholarship of the year.

The move to the Mobileye listing is part of Intel’s broader strategy under CEO Pat Gelsinger to turn around its core business.

Investors have been making big bets on new technologies in global transportation in recent years, and Intel aims to capitalize on demand for self-driving vehicles by listing shares of Mobileye.

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Driverless car technology is gaining traction even among traditional automakers such as Ford Motor Co (FN), General Motors Co (GM.N) and Toyota Motor Corp (7203.T), which have invested in models with features such as driver-assistance and self-driving systems.

Intel, however, is looking to test capital markets at a time when investor interest in IPOs has waned significantly due to recent stock market volatility amid fears of impending rate hikes and tensions. geopolitics.

Traditional U.S. IPOs have raised about $2.33 billion year-to-date, up from $26.67 billion in the same period last year, according to Dealogic. In recent weeks, several companies have postponed or abandoned their IPO plans.

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Intel did not disclose further details about the IPO, but it had previously said it would receive the majority of the proceeds from the stock sale. Some of those funds will be used to build more Intel chip factories, Gelsinger said in December. Read more

The chip giant will also retain a majority stake in the unit after the IPO, it previously said. In December, Reuters and other media reported that the IPO could value Mobileye at over $50 billion, although Mobileye may now struggle to achieve the same valuation given recent market volatility. said people familiar with the matter.

Mobileye, an Israeli company that Intel bought for about $15.3 billion in 2017, uses a camera-based system with adaptive cruise control and lane change assist in driverless cars.

The company, founded in 1999, plans to eventually build its own “lidar” sensor to help its cars plot a three-dimensional view of the road. In the meantime, he is currently using lidar units from Luminar Technologies on his initial axis robot.

Mobileye, which counts BMW, Audi, Volkswagen, Nissan, Honda and General Motors among its customers, was a bright spot for Intel, which faces fierce competition in the chipmaking segment from rivals Nvidia. Corp (NVDA.O) and Qualcomm Inc. (QCOM.O).

Gelsinger has been under pressure from activist investors to consider spinning off Intel’s chip operations, but the company still plans to invest billions to expand its U.S. chipmaking capacity and grow its market share. Marlet.

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Reporting by Niket Nishant, Nivedita Balu and Manya Saini in Bengaluru; Editing by Vinay Dwivedi and Amy Caren Daniel

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