New reports claims Intel is ready to take Mobileye public next year. The chip production company plans to take its advanced driver assistance technology and automated driving subsidiary company, Mobileye, it acquired for $15 billion over four years ago public in the coming year.
New Reports Claims Intel Is Ready To Take Mobileye Public Next Year
The company thinks spinning or taking Mobileye out as a separate publicly-traded company could increase its value for the stakeholders of the company. The parent company Intel made the announcement late Monday.
A source close to tech news platform, TechCrunch told the platform that the Initial Public Offering (IPO) is expected to take close to six months. With the stipulated timeline of six months, it shows that the company is yet to start the typical IPO roadshow process.
A source that is familiar with Intel’s plans in listing the shares of Mobileye told tech new platform Reuters that a unit could be valued at more than $50 billion. The first to report the company’s intention to sell shares of mobile however was The Wall Street Journal.
Intel’s Statement Regarding Mobileye’s IPO
According to a statement from the company, they said, “Intel will remain the majority owner of Mobileye, and the two companies will continue as strategic partners, collaborating on projects as they pursue the growth of computing in the automotive sector.”
Intel also noted that it will hold its interest as majority owners with no intention to spin off or divest at all. A last decision still needs to be reached in regards to the IPO and this is subject to market conditions. But as a majority shareholder, the company plans to continue to fully consolidate Mobileye.
CEO of Mobileye, Amnon Shashua will continue in the position and will also lead the same executive team. Teams in Intel working on radar and lidar development will be under Mobileye as well as Moovit which is an Israeli trip planning app recently acquired by Intel.
In a statement, the CEO of Intel, Pat Gelsinger said, “Intel’s acquisition of Mobileye has been a great success. Mobileye has achieved record revenue year-over-year with 2021 gains expected to be more than 40% higher than 2020, highlighting the powerful benefits to both companies of our ongoing partnership. Amnon and I determined that an IPO provides the best opportunity to build on Mobileye’s track record for innovation and unlock value for shareholders.”
Mobileye’s Milestones since Its Acquisition
According to Amnon Shashua, since the acquisition of the company back in 2017, it has been able to triple its annual chip shipments, headcount, and revenue. In a statement, Shashua said, “our alignment with Intel continues to provide Mobileye with valuable technical resources and support that has yielded strong revenue along with free cash flow that allows us to fund our AV development work from current revenue.”
The news of its IPO is just coming a few months after Mobileye partnered with car rental company Sixt to launch a robotaxi service in Germany this coming year. Mobileye has carried out autonomous vehicle testing programs in various cities in the US, Asia, and Europe this year and the company says it has also secured 41 new advanced driver assistance system program wins across over 30 automakers.
The company also plans to produce 35,000 purpose-built driverless delivery vehicles with Udelv by the year 2028. Mobileye has also secured various deals for mobility as a service programs in 2023.