Intel moved to sell a $1.5 billion stake in advanced driving assistance systems (ADAS) chip manufacturer Mobileye, less than a year after the subsidiary listed on the Nasdaq stock exchange.
In a regulatory filing, Intel stated it will offer 35 million shares of Class-A common stock based on the closing price on 2 June of $43.56 per share.
Following the sale, Intel’s voting share in the company will reduce to about 98.7 per cent, from 99.3 per cent currently.
Intel bought Mobileye in 2017 and in 2021 announced plans to hold an IPO the following year to help the company better-compete in an increasingly-competitive automotive industry.
Mobileye listed on Nasdaq in October 2022, after raising $861 million in the IPO, giving the company a value of around $25 billion.
It counts major car manufacturers BMW and Volkswagen among its customers.
In a summary outlining the stock sale, Intel said Mobileye’s ADAS products had been installed in approximately 800 vehicle models, with chips deployed in more than 140 million vehicles.
Risk factors noted to prospective investors include a highly-competitive market, significant investment in R&D and supply chain matters.
Indeed, it is facing increasing competition in the sector from rivals including Nvidia and Qualcomm, which have both invested in ADAS specialists in recent times.Subscribe to our daily newsletter Back