Intel to raise about US$1.5 billion in sale of part of Mobileye

INTEL, the largest US chipmaker by revenue, will sell part of its holdings in Mobileye Global, raising about US$1.48 billion for its ambitious spending plans.

The US company is offering 35 million shares with an option to sell a further 5.25 million shares of the Israeli automated driving technology maker, Mobileye said on Monday (Jun 5) in a regulatory filing. Mobileye stock has more than doubled since its initial public offering last October. Goldman Sachs Group and Morgan Stanley will underwrite the sale.

Intel chief executive officer Pat Gelsinger has launched an ambitious plan to regain his company’s lead in the semiconductor industry by building new plants and rapidly improving its manufacturing technology. He’s doing that at a time when the main market for his products, personal computer processors, has slumped. And the company is losing market share, which is hurting sales and profit.

Following the sale, Intel will retain about an 88 per cent stake in Mobileye, which it bought in 2018 for US$15.3 billion.

Mobileye shares declined 2.7 per cent to close at US$42.37, leaving them up 21 per cent this year. Intel fell 4.6 per cent to US$29.86 in New York, pairing its gains to 13 per cent in 2023. BLOOMBERG

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