Intel Corporation (NASDAQ:INTC) plans to spin off its Mobileye self-driving business by the middle of next year via an initial public offering (IPO) in New York that is expected to value it at around US$50bn.
Intel currently owns 100% of Mobileye shares, after it purchased the Israeli company for US$15bn in 2017, and is expected to retain majority ownership following the completion of the IPO.
The companies will continue to work as strategic partners once the listing occurs, Intel said in a statement, with Amnon Shashua continuing as Mobileye’s chief executive officer.
Intel said it hopes the move to a public listing in the US will “unlock the value of Mobileye for Intel shareholders by creating a separate publicly traded company and will build on Mobileye’s successful track record and serve its expanded market”.
Intel chief executive Pat Gelsinger said: “Amnon and I determined that an IPO provides the best opportunity to build on Mobileye’s track record for innovation and unlock value for shareholders.”