Intel's Mobileye files for initial public offering

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Jan Hetfleisch

Intel (NASDAQ:INTC) self-driving unit Mobileye Global has filed for an initial public offering of its class A common shares.

The news comes after a drastic cut to the expected valuation for the unit, to about $30B from a previously hoped-for $50B. It's also happening during a weak week for the stock market.

Intel stock (INTC) is up 0.4% postmarket, after declining 2.3% during the regular trading session Friday.

Intel will retain full control of Mobileye through ownership of supervoting class B shares; it didn't detail the number of Class A share on offer, or the price at which they would be offered.

Mobileye is seeking to list on Nasdaq until the ticker symbol NYSE:MBLY.

It's coming public via Goldman Sachs, Morgan Stanley, Evercore ISI, Barclays, Citigroup, BofA Securities and others.

The unit's shown solid sales growth and declining losses: For the six months ended July 2, Mobileye posted revenues of $854M, with gross profit of $405M. Operating loss was $36M, and allowing for income taxes, net loss was $67M over that period.

The company faces heavy competition, it says: Among silicon providers, they include Ambarella (AMBA), Advanced Micro Devices (AMD), Arriver/Qualcomm (QCOM), Black Sesame Technologies, Horizon Robotics, Huawei, Nvidia (NVDA), NXP (NXPI), Renesas Electronics (OTCPK:RNECY), and Texas Instruments (TXN).

For autonomous driving competitors, it notes Argo AI, Aurora, Cruise, Motional, Pony.ai, Waymo (GOOG) (GOOGL), Yandex (YNDX), and Zoox in the U.S. and Europe, and Auto X, Baidu (BIDU), Deeproute.ai, Didi Chuxing (OTCPK:DIDIY), Momenta, and WeRide in China. Consumer AV competitors include Apple (AAPL), Sony (SONY), and Tesla (TSLA).

Intel bought Mobileye in 2017 for about $15.3B.

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