Intel says Mobileye has confidentially filed for IPO

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• Intel (NASDAQ:INTC) said on Monday that its autonomous driving unit, Mobileye, has confidentially submitted its draft registration statement with the Securities and Exchange Commission for its upcoming initial public offering.
• No details were given about a valuation, but Intel purchased the Israeli tech company for $15.3 billion in 2017.
• Intel (INTC) shares were slightly lower in early Monday trading, down less than 0.5% to $47.98.
• In December, Intel (INTC) said it was spinning off Mobileye in 2022, noting the unit had more than 40% revenue growth in 2021.

Comments

[Bruce24]

If you want to understand what a "confidential" filling with the SEC is check out:

www.paulweiss.com/...

[Wurlitzer]

Saying "confidentially" is easier than "smoke and mirrors" but it's the same thing.

[Bruce Bohannon]

Scuttlebutt...

DJ Intel Files to Take Self-Driving Unit Mobileye Public -- WSJ
11:12 AM ET 3/7/22 | Dow Jones

By Colin Kellaher

Intel Corp. said it has filed paperwork to take its Mobileye self-driving car unit public as the semiconductor giant tries to spark investor enthusiasm in its own shares and capitalize on growing demand for automated driving.

Intel last year said it was going to list Israel-based Mobileye, which it bought in 2017 for around $15 billion. People familiar with the matter have said the unit could fetch a valuation above $50 billion.

[MasterInvestor123]

So what do the existing Intel shareholders receive? Or are they getting shafted? Will they directly get shares in Mobileye?

[Just Some Guy]

@MasterInvestor123, I believe the plan is for Intel to keep about half, so as an Intel shareholder you still own half, plus of course Intel gets maybe $25b for the half sold, and as an Intel shareholder you benefit from those proceeds as well. I expect if all goes per this plan it should boost INTC share price $5-$10 by the time the IPO completes.
edit: half sold for $25b

[SilverDollar2014]

1. There is no such thing as a 'Stupid Question'.
2. WTF. I thought INTEL owned Mobileye?
3. How can Mobileye have it's own stock ticker symbol -if we the owners of Intel already own it?
4. If I own Intel do I need to buy Mobileye to make money on Mobileye's sales, etc.?

Thank you in Advance.

[Wyo Investments]

@SilverDollar2014 Until they come out with details of the plan, the answer to number 4, is maybe. Mobileye is owned by Intel and Intel is sending the division public as its own company. There are a few ways they can do this, a few examples are:

- Give each shareholder in Intel a corresponding number of shares of Mobileye
- Sell a portion on IPO and retain the cash as Intel and maintain a portion of the company, say IPO 50% of the shares and maintain 50%
- Give Intel shareholders an option to covert their INTC shares into Mobileye

There are probably a few other ways this can happen, but these are common ways. My personal opinion is to give the INTC shareholders shares in Mobileye when it spins as a tax-free spinoff is the most shareholder friendly option.

[kata]

@Wyo Investments when msft spun off expe they didn’t give shareholders anything.

[Wyo Investments]

@kata Wow, that was a relatively long time ago. It appears they did something similar to the second option above, where MSFT retained a portion of the shares. I've never found this leaves me happy as a shareholder but in theory in increases the value in the parent company, so shareholders should be rewarded with a higher stock price.

[Just Some Guy]

Confidential? Did it also file autonomously? Has it become self-aware?

[Rex Rode]

So much for being confidential! What a joke!

[stockroach]

@Rex Rode Dont you feel stupid now!!

www.paulweiss.com/...

[14654912]

so how will this affect the shareholders??????

[Pradiyie]

Worst time to IPO

[BetSafely]

@Pradiyie self driving tanks, and armoured vehicles

[josephaoppenheim]

@Pradiyie ….that’s why the confidentiality since it gives INTC more ease to vary the terms of the IPO (amount and price) because of the market and IPO volatility.

The purpose is to raise more money needed for INTC to build the new chip plants. The Chips Act hasn’t become law yet, thus not sure how much government money will be granted to INTC and how to structure the IPO.

Not sure, but probably INTC could delay or cancel the IPO.

Bottom line, lots of uncertainties, so, the SEC has this confidentiality option and not just for INTC.

Also, this stuff is to make money for the wealthy, not the other 95% or so. Personally, I think INTC is an ethical company.

[zisdead]

@Pradiyie worst time to IPO an Electric vehicle play with oil going to $200 a barrell.🤣

Oh man I sincerely hope your wife controls the family portfolio.

[deadhead213]

Huge upside for both co’s

[kevn1111]

until we hear pricing, it really is no info.

[grxbstrd]

confidential no longer

[Maxed Out Mama]

Let the games begin! Bad time for an IPO, but Intel needs the money.

[correct way to invest]

@Maxed Out Mama not really they are not nvdia or amd

[Willow Street Investments]

@Maxed Out Mama You have no idea when it is going public.

[Maxed Out Mama]

@Willow Street Investments Intel mgmt said this year. Filing now would imply by fall, I think. It's a bad time for an IPO.