Upon the completion of the offering, Intel will own all the outstanding Class B common stock of Mobileye Global, which represents nearly 88.7% of the latter's common stock and the semiconductor major’s voting share will come down to nearly 98.7% from the 99.3% it currently holds
Intel to offer 35 million shares of Class A common stock worth $1.5bn in self-driving tech firm Mobileye Global. (Credit: Intel Corporation)
Intel Overseas Funding, a fully owned subsidiary of Intel, is offering to sell 35 million shares of Class A common stock worth $1.5bn in self-driving tech firm Mobileye Global.
Mobileye’s Class A common stock is listed on Nasdaq and the last reported sale price was $43.56 per share as on 2 June 2023.
Upon the completion of the underwritten secondary public offering, Intel will own all the outstanding Class B common stock of Mobileye Global, which represents nearly 88.7% of the latter’s common stock.
Furthermore, the semiconductor major’s voting share in the Israel-based company will come down to nearly 98.7% from the 99.3% it currently holds.
Intel seeks to grant the underwriters a 30-day option to purchase up to an additional 5.2 million shares of Mobileye Global’s Class A common stock.
Goldman Sachs and Morgan Stanley are serving as joint lead book-running managers for the anticipated offering, said Mobileye Global.
Founded in 1999, Mobileye Global offers autonomous driving and driver-assistance technologies by leveraging expertise in computer vision, artificial intelligence (AI), mapping, and data analysis.
The company was acquired by Intel for $63.54 per share in cash, which represented an equity value of about $15.3bn and an enterprise value of $14.7bn in 2017.
Prior to its acquisition by Intel, the company was publicly trading on the New York Stock Exchange (NYSE) since 2014.
In December 2021, Intel revealed plans to enable Mobileye to go public in the US by taking the initial public offering (IPO) route. In October 2022, the latter once again became a public company.
Intel’s decision was expected to unlock the value of Mobileye for shareholders through the creation of a separate publicly listed company.
Furthermore, it was said to consolidate Mobileye’s track record and help cater to its expanded market.