Shares of Intel (NASDAQ:INTC) are basically flat on the day despite a Mobileye initial public offering (IPO) update. The chipmaker announced today that its Mobileye unit has filed paperwork to the U.S. Securities and Exchange Commission (SEC) for an IPO. However, the filing is not yet available to the public because Intel utilized the confidential filing provision.
Mobileye is an Israeli-based self-driving technology company that was acquired by Intel in 2017 for $15.3 billion. Last year, the company reported revenue of $1.4 billion, up about 40% year-over-year. According to people familiar with the matter, Mobileye is likely to IPO at a valuation near $50 billion.
In the past, Mobileye has collaborated with companies such as Tesla (NASDAQ:TSLA), General Motors (NYSE:GM) and BMW (OTCMKTS:BMWYY). The company ended its partnership with Tesla in 2016 due to “disagreements about how the technology was deployed.”
In addition, Intel expects the IPO to occur sometime during the second half of this year. The company announced last December that it had plans to take the self-driving company public.
So, what else should investors know about the Mobileye IPO? Let’s jump right in.
INTC Stock: What to Know About the Mobileye IPO
- Mobileye’s philosophy is that “if a human can drive a car based on vision alone — so can a computer.”
- Intel has not yet disclosed the price range for the IPO or the number of shares it plans to offer.
- Mobileye was previously listed on the New York Stock Exchange before Intel’s acquisition took it private.
- After the IPO, Intel expects to retain a majority stake in Mobileye.
- Mobileye’s team of 1,700 employees develops advanced driver-assistance systems (ADAS) for other automakers or original equipment manufacturers (OEMs).
- The company also produces cameras, software and computer chips for OEMs. However, Mobileye’s core business focuses on creating camera-based systems to assist in self-driving and safety precautions.
- More than 100 million vehicles worldwide are “equipped with Mobileye technology.” In addition, more than 300 car models utilize the company’s technology.
- Furthermore, more than 25 global automakers collaborate with Mobileye to aid self-driving safety.
- Last year, the company tested self-driving car prototypes in several major cities, which included Shanghai, Paris and Detroit.
- Looking ahead, Mobileye plans on building its own light detection and ranging (LiDAR) system. The Israeli-based company currently uses LiDAR technology from Luminar Technologies (NASDAQ:LAZR).
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
