Intel’s Mobileye IPO is not a capital raise, but a market entry for the self-driving tech company, says CEO Pat Gelsinger
Intel CEO Pat Gelsinger on Monday said the self-driving technology company Mobileye’s initial public offering was not to raise capital, but to enter the market.
“It’s a move to potentially bring them to market. It’s not fundraising,” Gelsinger said at the WSJ Tech Live conference when asked why. Intel is heading for an IPO in such a tough market environment and whether Intel needs that cash.
“The autonomous vehicle segment is a strong growth segment. It’s a tough market. At the same time, we believe the company should go public and this is the best way to maximize the company’s potential. ty,” said Gelsinger.
He also said he believes self-driving cars could hit the streets by the middle of the decade.
Last week, Mobileye said it is targeting a valuation of close to $16 billion (about Rs 1,32,400) in its IPO, a third less than previously expected, due to volatility in the stock market. and rising interest rates reduce appetite for new listings .
Mobileye said in a regulatory filing it is offering 41 million shares of common stock at prices ranging from $18 (about Rs 1,400) to $20 (about Rs 1,600) per share, aiming to raise money up to $820 million (approximately Rs 6,700), based on the top end of the listing’s proposed scope.
Reuters, citing sources, reported in April that the rise of the stock market could value Mobileye up to $50 billion (about Rs 3,99,000).
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