© Stocksak. FILE PHOTO – The Mobileye logo can be seen at the Munich Auto Show, IAA Mobility 20,21 in Munich, Germany, September 7, 2021. REUTERS/Wolfgang Rattay/File Photo
(Stocksak) – Intel Corp (NASDAQ:) Chief Executive Pat Gelsinger said Monday that the initial public offering by Mobileye, its self-driving technology company, was not a capital raise but more an entry into the market.
“It is a move that could potentially move them into market. When Gelsinger was asked why Intel was going ahead with an IPO in such difficult market conditions and if Intel needed the cash, Gelsinger said that it wasn’t a capital raise.
“The autonomous vehicle market is a strong area for growth. It’s a difficult market. Gelsinger stated that while we believe the company should be publicly traded, it is also the best way to maximize its potential.”
He also stated that he believes self driving cars could be commonplace by the middle decade.
Mobileye stated last week that it was targeting a valuation close to $16 billion for its IPO. This is less than a third what it had previously anticipated, as volatility in stock market and rising interest rates dampen investor appetite for new listings.
Mobileye announced in a regulatory filing that 41 million shares are being offered at $18-20 per share. The listing is expected to raise $820 million based on the maximum price.
Stocksak, citing sources had reported in April, that Mobileye could be valued at up to $50 billion by the stock market flotation.