Published - October 18, 2022 @ 4:53 PM (EET)

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According to a prospectus filed with the SEC, Intel (NASDAQ:INTC) Corp's Mobileye said it plans to offer 41 million class A shares at a projected price of $18 to $21 per share of its initial public offering.

The underwriters of the IPO, including Goldman Sachs, Morgan Stanley, Citigroup, and BofA Securities, have a 30-day option to up to roughly 6.2 million additional shares. 

Cornerstone investors Baillie Gifford and Norges Bank Investment Management have indicated an interest in purchasing up to an aggregate of $330 million shares of its Class A common stock.

Intel will retain a majority stake in Mobileye, including all the planned class B shares with voting rights equivalent to 10 A shares.  Following the completion of the offering, Intel's hold on the B shares will immediately represent about 99.4% of the voting power.

WHY IT MATTERS

Although well below its initial target of nearly $50 billion, the $16 billion valuation to list Mobileye on the Nasdaq is part of Intel's broader strategy to turn around its core business.

Investors have been waiting almost a year for Intel to file the paperwork for its autonomous vehicle technology business. 

While setting the stage to be one of the biggest IPOs this year, the listing could be the first sign of renewed investor sentiment amid heightened volatility and disappointing debut performances of last year's listings.

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

NOW WHAT

Mobileye, which has grown revenue from $200 million to $1.4 billion over the past five years, a near-63% compounded annual growth rate, said it has applied to list the A shares on Nasdaq under the symbol MBLY.

It is the same ticker the company used when it went public for the first time in 2014.

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EARLIER READ: Intel confidentially files self-driving unit Mobileye's US IPO
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