In a recent development, Intel Corporation (INTC) has announced its plan to offer 35 million shares of Class A common stock, equivalent to a $1.5 billion stake, in Mobileye Global Inc. (NASDAQ: MBLY). This decision was disclosed in a regulatory filing on Monday.
Following the offering, Intel’s ownership in the self-driving technology company will decrease to around 98.7% from its current 99.3% stake.
In response to this news, Mobileye Global’s shares experienced a decline of over 4% during extended trading. The share price dropped to $40.55.
This share sale occurs at a time when Mobileye is facing stiff competition in the assisted driving market from chipmakers such as NVIDIA Corporation (NVDA) and QUALCOMM Incorporated (QCOM), who are striving to make their mark in this domain.
Mobileye, a renowned self-driving technology provider with customers such as BMW, Nissan, and Volkswagen, made its debut on the Nasdaq stock exchange last year after a successful initial public offering that raised $861 million.
Goldman Sachs & Co and Morgan Stanley have been appointed as joint book-running managers for this share sale, according to the company’s statement.
Yesterday, on June 5th, the MBLY stock experienced a decline of -2.73%, closing at $42.37. The stock opened slightly lower than the previous day’s closing price and traded within a range of $42.22 and $44.17 throughout the day. The trading volume for the day reached 1.38 million shares, which is relatively lower than the average volume of 2.45 million over the past three months. Presently, Mobileye’s market capitalization stands at $34.90 billion.
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