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Intel listed Mobileye in October last year at a valuation of close to $16 billion.
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Mobileye Global shares were dropping early on Tuesday as chip maker Intel planned to sell shares of the company worth around $1.4 billion. Intel looks to be taking profit from a run up in the shares of the self-driving technology company it spun off last year.
A subsidiary of chip maker
Intel
(ticker: INTC) will sell 35 million
Mobileye
(MBLY) shares, with an underwriters’ option for a further 5.25 million shares.
Mobileye shares were down 5.8% at $39.90 in premarket trading on Tuesday. That would value the shares being sold at just under $1.4 billion.
Intel listed Mobileye in October last year at a valuation of close to $16 billion, considerably less than expected. However, Mobileye’s market capitalization has surged to around $35 billion since then, partly driven by excitement around stocks related to artificial intelligence.
Intel could do with banking some gains on Mobileye, which it bought for roughly $15 billion in 2017. Intel shares were up 0.3% in premarket trading on Tuesday. Intel stock is up 13% this year so far but lags a 36% rise in the PHLX Semiconductor Index.
Write to Adam Clark at [email protected]
Source: https://www.barrons.com/articles/intel-mobileye-global-stock-price-6299c8e8?siteid=yhoof2&yptr=yahoo