Intel's Mobileye (Self-Driving Car Divison) Files For IPO
Mobileye, which is a sub-company of Intel, has recently filed for an IPO. The company in question is involved with all the technologies and hardware related to self-driving cars, such as maps, chips, and even software. On Friday, the Mobileye company finally filed for an IPO with the SEC.
Mobileye company sales were around $879 million in 2019, which increased to around $967 million the next year. During the last year, the company's sales were at $1.39 billion, highlighting the consistent growth over the years. Similarly, the company has also reduced its losses from $328 million to only $75 million.
So, in short, Mobileye has increased its sales revenue while also tacking the losses and reducing them year by year. This improved financial situation of Mobileye will allow it to get a better valuation and better market share at the IPO.
Intel Is Changing Its Core Business
Experts believe that this move to listing Mobileye on the exchange is part of a major strategy. Intel has been trying for years to change the composition of its core business, which pushed it to buy Mobileye for a sum of $15 billion in 2017. Recently, Intel has announced plans that the Mobileye company will be going public after getting a listing on Nasdaq.
Intel plans to use a portion of the money raised from turning the company public to build new chip factories. Considering how it is such a capital-heavy process to make new companies, it makes sense for Intel to walk on this path.
Mobileye company was originally founded in the year 1999... Since then, it has worked with numerous brands such as Ford, GM, Volkswagen, BMW, and Audi! Even today, some of the big names are utilizing the company's technology and the hardware in their cars to improve the user experience or to allow additional features.
After the successful listing of the company, experts believe that it will have access to more money which will allow Mobileye to expand and grow.