(Reuters) - Intel Corp (NASDAQ:INTC) 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 (NASDAQ:NVDA) Corp and Qualcomm (NASDAQ:QCOM) Inc, which are trying to make inroads into the space.
Mobileye, which counts BMW, Nissan (OTC:NSANY) and Volkswagen (ETR:VOWG_p), among others as its customers, listed on the Nasdaq last year after raising $861 million in an initial public offering.
Goldman Sachs & Co (NYSE:GS) and Morgan Stanley (NYSE:MS) are acting as joint book-running managers for the share sale, the company said.