Intel CEO says Mobileye IPO not about raising capital, more about listing unit

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Intel (NASDAQ:INTC) is proceeding with an initial public offering for its self-driving unit Mobileye (MBLY) to get the stock listed on the US market rather than to raise capital, according to a recent Reuters report.

Intel Chief Executive Officer Pat Gelsinger told reporters during an event on Monday that the company was moving ahead with the deal despite difficult market conditions because it believes the unit has strong growth prospects and that an IPO "is the best way to maximize the company's potential."

Mobileye is slated to make its market debut on Wednesday. The Wall Street Journal reported Monday that Intel could price the shares above its previously stated range of $18 to $20, which would give Mobileye a valuation of $16B or more.

Intel acquired Mobileye in 2017 for $15.3B. The company's pursuit of an IPO amid challenging market conditions has led to market speculation about whether Intel was under pressure to raise cash. Intel is in the midst of expanding its manufacturing operations. The chipmaking giant was said to have originally eyed a valuation of around $50B for the unit.

Mobileye shares are expected to trade on Nasdaq under the symbol MBLY. The unit first filed for an IPO in March.