Goldman Sachs, Morgan Stanley to lead Intels Mobileye IPO -sources

div classBodysc17zpet90 cdBBJodivpBy Krystal Hu and Anirban Senp

pReuters – Intel Corps Mobileye has tapped investment banks Goldman Sachs Group Inc and Morgan Stanley to lead preparations for the initial public offering of the selfdriving car unit, according to three people familiar with the matter. pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe stock market flotation, which is set to launch later this year, could value Mobileye at as much as 50 billion, the sources said, cautioning that the timing, valuation and size of the IPO are subject to market conditions.p

pThe amount to be raised in the IPO could not be learned and the sources requested anonymity because details of the IPO preparations are confidential. p

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

pMobileye‘s preparation is coming at a tough time for the IPO market. Stock market volatility triggered by a selloff in technology stocks and Russia’s invasion of Ukraine has forced several highprofile firms, including GoPuff and Chobani, to postpone their plans to go public this year. p

pThe IPO freeze followed a recordbreaking 2021 in which more than 300 billion was raised through flotations. p

pOnly 21 companies, excluding listings of special purpose acquisition companies, have been listed on U.S. exchanges this year so far, according to Dealogic. Other major IPO hopefuls preparing for a listing this year include SoftBankowned chip designed Arm and social media platform Reddit. p

pIntel bought Mobileye for about 15.3 billion in 2017. The Israeli company uses a camerabased system with adaptive cruise control and lane change assistance in driverless cars. Founded in 1999, Mobileye plans to eventually build its own lidar sensor to help its cars map out a threedimensional view of the road. p

pMobileye, which counts BMW, Audi, Volkswagen, Nissan, Honda and General Motors as its clients, has been a bright spot for Intel, which faces stiff competition in the chipmaking segment from rivals Nvidia Corp and Qualcomm Inc.p

pThe decision to list Mobileye is part of Intels broader strategy under Chief Executive Officer Pat Gelsinger to turn around its core business. Intel expects to receive the majority of the proceeds from the share sale and use some of the funds to build more Intel chip plants, Gelsinger said in December.p

pIntel has said it will retain a majority stake in Mobileye after the IPO.p

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pp Reporting by Krystal Hu in New York and Anirban Sen in Bengaluru additional reporting by Echo Wang Editing by Bernard Orrp

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