Chief Executive at Intel Corp: IPO Mobileye isn’t a capital raise, but a market entry

On Monday, Pat Gelsinger, Chief Executive at Intel Corp, made an announcement stating that the Initial Public Offering (IPO) of the Mobileye’s stock wasn’t a way of raising its capital, but a strategy for market entry. Mobileye is an Intel’s daughter company, which designs self-driving cars. 

The announcement was a response to a question asked at the WSJ Tech Live conference about the need of IPO Mobileye promotion and required sums of money for its realization. Gelsinger highlighted that he sees a great potential for the company’s growth within the autonomous vehicle segment. Despite a difficult market situation, the company’s IPO was the best option for its further development.

According to Gelsinger, self-driving cars might become pretty common already in 2025.

In its regulatory filing, Mobileye stated that 41 million shares of common stock are now publicly offered at an $18 to $20 price range per share. If the shares are purchased by the highest price of $20, the company will raise up to $820 million.