Intel to sell $1.5 billion stake in Mobileye

Intel to sell $1.5 billion stake in Mobileye

Intel Corp is offering 35 million shares of Class A common stock, or about a $1.5 billion stake, in Mobileye Global Inc, according to a regulatory filing on Monday.

After the offering, Intel's voting share in the self-driving technology company will come down to about 98.7% from the 99.3% it currently holds.

Shares of the Jerusalem, Israel-based Mobileye fell over 4% to $40.55 in extended trading.

The share sale comes at a time when the company is facing intense competition in the assisted driving market from chipmakers Nvidia Corp and Qualcomm Inc, which are trying to make inroads into the space.

Mobileye, which counts BMW, Nissan and Volkswagen, among others as its customers, listed on the Nasdaq last year after raising $861 million in an initial public offering.

Goldman Sachs & Co and Morgan Stanley are acting as joint book-running managers for the share sale, the company said.