According to Cloudera's prospectus, an agreement that kicks in at the time of the offering restricts "Intel's ability to acquire more than 20 percent of our fully diluted capital stock, which we refer to as the Intel Maximum Percentage."
Assuming Intel doesn't sell shares in the IPO, an offering of about 11 million shares to the public would bring its ownership to 20 percent.
Lise Buyer, who advises companies as they prepare to go public, said the purpose of the agreement is most likely to reassure potential customers who may be concerned about Intel having undue influence.
"It's like saying, you can ride on the bus but you can't drive," said Buyer, the founder of Class V Group in Silicon Valley. "You can't steer the direction of the company."
There are two ways Intel can increase its stake.
The first would be a full acquisition of the company. The second would be if another investor (excluding a "purely financial investor") buys a percentage that exceeds 20 percent. In that case "Intel's Maximum Percentage shall increase to the percentage held by such Other Strategic Holder."