(Reuters) – Intel Corp is offering 35 million shares of Class A common stock, or a stake of about $1.5 billion, in Mobileye Global Inc, according to a regulatory filing released on Monday.
After the offer, Intel’s voting power in the autonomous technology company will be reduced to approximately 98.7% from the 99.3% it currently holds.
Shares of Mobileye, based in Jerusalem, Israel, fell more than 4% to $40.55 in extended trading.
The stock 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 break into the space.
Mobileye, which counts BMW, Nissan and Volkswagen among its clients, listed on Nasdaq last year after raising $861 million in an IPO.
Goldman Sachs & Co and Morgan Stanley are acting as joint bookrunners for the stock sale, the company said.
(Reporting by Bhanvi Satija in Bengaluru; Editing by Pooja Desai)