Intel-owned Mobileye files S-1 for IPO

Intel-owned Mobileye files S-1 for IPO

Mobileye CEO Amnon Shashua poses with a Mobileye driverless vehicle at the Nasdaq Market site in New York on July 20, 2021.

Jeena Moon | Reuters

Mobileye, an Intel-owned company that makes chips, boards and software for self-driving cars, has filed for an IPO, according to a prospectus filed Friday with the SEC.

Mobileye’s fill indicates strong revenue growth for the Israel-based subsidiary, rising from $879 million in sales in 2019 to $967 million in 2020, to $1.39 billion last year. Losses have fallen from $328 million in 2019 to $75 million last year.

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The decision to list Mobileye on the Nasdaq is part of Intel’s broader strategy to turn around its core business. Intel acquired the company for $15.3 billion in 2017 and previously announced plans to take Mobileye public this year.

Intel previously said it would use some of the funds from the Mobileye listing to build more chip factories as it embarks on a capital-intensive process to become a foundry for other chipmakers.

Mobileye, founded in 1999, has partnered with Audi, BMW, Volkswagen, GM and Ford to develop advanced driving and safety features such as driver assistance and camera-based lane keeping , chips and the company’s “EyeQ” software. Mobileye CEO Amnon Shashua said in the filing that 50 companies are currently using the company’s technology on 800 vehicle models.

The prospectus says Mobileye plans to list Class A common stock, but did not provide the number of shares or price range for the proposed offering. Intel will retain ownership of the Class B shares which have ten times the votes of the Class A shares, according to the prospectus, giving it control of the company’s board of directors and other decisions.

Intel is looking to test the public markets at a time when appetite for futuristic growth technologies like self-driving cars has slowed significantly in the face of rising inflation and macroeconomic concerns.

Intel stock rose less than 1% in extended trading.

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