Mobileye shares rise after Intel's planned stake sale unveiled

Shares of autonomous driving tech firm Mobileye MBLY.O up 1.8% to $18.97 early Weds after secondary offering by chipmaker Intel INTC.O announced

Israeli-based MBLY late Tues commenced offering of 45 mln Class A shares being offloaded by Intel Overseas Funding Corp with Goldman Sachs and BofA as jt lead bookrunners

In addition, MBLY agreed to concurrently repurchase $100 mln worth of Class A shares from INTC in private transaction

INTC also intends to voluntarily convert 50 mln Class B shares into 50 mln Class A shares, saying conversion being effected solely to increase the number of Class A shares outstanding

Following the transactions, INTC will beneficially own ~82% of MBLY and have approx 98% of voting power, per the prospectus

As of May 30, MBLY had ~812.5 mln total shares outstanding giving it roughly $15 bln market cap

Wells Fargo on Weds boosted its MBLY PT by $6 to $24, pointing to positive preannouncement and Taiwan Semiconductor Manufacturing Co (TSMC) agreement

MBLY late Tues released preliminary Q2 rev estimate of $502-$506 mln, above its prior outlook of about $470 mln

It also said entered into agreement with TSMC to manufacture components of co's imaging radar and future generations of its EyeQ product, and potentially future products

Avg rating among 27 analysts covering MBLY is "buy" and median PT is $18 - LSEG data

With move on Weds, stock down ~5% YTD

INTC shares on Weds down 1.6% at $23.22 after about 7% gain on Tues