Intel is taking another step on the road to the issuance of Mobilai at expected value of $ 50 billion

Technology giant INTEL CORPORATION is taking another step on the road to the issuance of Mobilai, the Israeli autonomous vehicle division. According to a report by the Reuters news agency, the company turned to the investment banks GOLDMAN SACHS  MORGAN STANLEY to lead the preparations for the initial public offering, according to people close to the company.
According to the report, which did not receive a response from the banks or the company, the IPO, which is due to start later this year, is expected to take place at a value of about $ 50 billion. Although the sources stressed that the timing, valuation and size of the offering are subject to market conditions.
The expected IPO is coming to the IPO market during a difficult period, partly due to the volatility in the stock market caused as a result of the sale of technology shares and the Russian invasion of Ukraine. Which has forced a number of high-profile companies, such as GoPuff and Chobani, to postpone their plans to go public this year. This, after a record year during 2021, in which more than $ 300 billion was raised through initial public offerings. Only 21 companies, excluding listings of special purpose acquisition companies (SPACs), have been listed on U.S. stock exchanges so far this year.
The company whose customers include BMW, Audi, Volkswagen, Nissan, Honda and General Motors, has been a bright spot for Intel, which is facing tough competition in the field of chip manufacturing from competitors. The decision to list Mobilai is part of Intel's broader strategy under CEO Pat Glasinger to flood value in its core business. In December, Glasinger said Intel expects to receive most of the proceeds from the sale of shares and use some of the funds to build more Intel chips. Because it will continue to be the largest shareholder in the company even after the IPO.
Last month, the company announced that it had submitted a draft prospectus to the US Securities and Exchange Commission (SEC) for an initial public offering on Wall Street. Intel acquired Mobilai in 2017 for about $ 15.3 billion. Mobilai was issued in 2014 on the local stock exchange, but following the acquisition by Intel, its shares were delisted. At the same time, the company's revenue for Intel has tripled. As early as December, it was reported by the Wall Street Journal (WSJ) that Intel plans to issue the division as a separate unit, for a similar value.
A few months ago it was reported that Mobilai is one of the most significant growth engines for Intel, when it was reported that the company's most significant growth stemmed from two areas, the first being the Internet of Things (IOTG). The segment's revenues accounted for close to 7.1% of total revenues during the Company's third quarter reports.
The segment is divided into two divisions - one is also called IOTG and provided the bulk of the growth with 53.9% of revenue. The other is Mobilai and the remaining percentage is Mobilai. The company mainly develops driver safety assist systems (ADAS) and autonomous vehicle applications. Mobilai has grown significantly in recent times due to the improvement in vehicle production in the world compared to previous years, despite the fact that the chip crisis in the industry is dragging the industry down.