Goldman Sachs and Morgan Stanley to Lead Intel Mobileye IPO

(April 14): Intel Corp’s Mobileye has tapped investment banks Goldman Sachs Group Inc and Morgan Stanley to lead preparations for the self-driving car unit’s initial public offering, according to three people familiar with the matter.

The IPO, which is expected to launch later this year, could value Mobileye up to $50 billion, the sources said, warning that the timing, valuation and size of the IPO are subject to at market conditions.

The amount to be raised in the IPO could not be known and the sources requested anonymity as details of the IPO preparations are confidential.

Representatives for Intel and Mobileye did not respond to requests for comment. Morgan Stanley and Goldman Sachs declined to comment.

Mobileye’s readiness comes at a difficult time for the IPO market. Stock market volatility triggered by a sell-off in tech stocks and Russia’s invasion of Ukraine has forced several high-profile companies, including GoPuff and Chobani, to postpone plans to go public this year.

The IPO freeze followed a record year 2021 in which more than US$300 billion was raised through IPOs.

According to Dealogic, only 21 companies, excluding special purpose acquisition company listings, have listed on US exchanges this year so far. Other big IPO hopefuls gearing up for a listing this year include SoftBank-designed Arm and social media platform Reddit.

Intel bought Mobileye for around $15.3 billion in 2017. The Israeli company uses a camera-based system with adaptive cruise control and lane-change assist in driverless cars. Founded in 1999, Mobileye plans to eventually build its own lidar sensor to help its cars plot a three-dimensional view of the road.

Mobileye, which counts BMW, Audi, Volkswagen, Nissan, Honda and General Motors among its customers, was a bright spot for Intel, which faces fierce competition in the chipmaking segment from rivals Nvidia. Corp and Qualcomm Inc.

The decision to list Mobileye is part of Intel’s broader strategy under CEO Pat Gelsinger to turn around its core business. Intel expects to receive the majority of the proceeds from the stock sale and use some of the funds to build more Intel chip factories, Gelsinger said in December.

Intel said it would retain a majority stake in Mobileye after the IPO.