Intel Plans To Take Its ‘Mobileye’ Self-Driving Car Unit Public

Intel (NASDAQ:INTC) says it plans to take public Mobileye, the Israeli autonomous driving firm it acquired for $15.3 billion U.S. in 2017.

The Santa-Clara-Calif.-based chip manufacturer said that it plans to take Mobileye public in the U.S. in mid-2022 via an initial public offering (IPO) of newly issued Mobileye stock.

Intel, whose share price has fallen from $68 U.S. in April to less than $50 U.S. today, said the listing will create value for Intel shareholders. It added that it will remain the majority shareholder of Mobileye going forward.

Founded in Jerusalem in 1999, Mobileye is one of Israel’s biggest success stories in technology. The company develops self-driving cars and advanced driver-assistance systems for other manufacturers.

Over the years, it has partnered with Tesla (NASDAQ:TSLA), BMW, Volvo and General Motors (NYSE:GM). Last July, Mobileye signed a deal with Ford (NYSE:F) to support its next generation of advanced driving and safety features across the automaker’s global product lineup.

In a statement, Intel hailed the acquisition of Mobileye as a success, adding that Mobileye’s revenue will be 40% higher in 2021 than it was in 2020. The Mobileye listing marks a return to the stock market for the company, which listed on the New York Stock Exchange in 2014 after receiving an investment of $130 million U.S. from Goldman Sachs (NYSE:GS) in 2007.

Following the news, Intel’s stock rose 8% in after hours trading with shares climbing from around $49 to $51.