Intel's Mobileye seeks drastically lower $16 billion valuation in IPO By Reuters
2022-10-19 03:00:08

By Mehnaz Yasmin and Manya Saini

(Reuters) -Intel's Mobileye said on Tuesday it was targeting a valuation of nearly $16 billion in its initial public offering, less than a third of what it had previously expected, as volatility in stock markets and rising interest rates dampen the appetite for new listings.

The self-driving unit of Intel (NASDAQ:) said in a regulatory filing it is offering 41 million shares of common stock priced between $18 and $20 per share, aiming to raise up to $820 million, based on the top end of the proposed range of the listing.

Reuters, citing sources, had reported in April that the stock market flotation could value Mobileye at as much as $50 billion.

The move sets the stage for what is expected to be one of the biggest technology listings this year amid a market rout that has sapped appetite for deals, as companies struggle with rising interest rates and increased investor scrutiny on profitability after a stellar 2021.

"The IPO market has been dead, and to revive it, you need a Facebook (NASDAQ:), Uber (NYSE:), or DraftKings (NASDAQ:) moment to bring others back to the market," said Jared Carmel, managing partner at Manhattan Venture Partners.

"Most companies don't have the grit needed to blaze a trail with all this public market volatility."

IPOs by U.S. technology companies have sunk to their lowest levels since the global financial crisis of 2008, as several companies have shelved plans for their listings in the country.

Tech IPOs this year have raised $507 million, according to Refinitiv data, the lowest amount that has been raised through flotation since 2000.

Greek yogurt maker Chobani withdrew its plans for a U.S. IPO in September, while several other big names such as Reddit and ServiceTitan have reportedly delayed their plans to go public this year.

Corebridge Financial Inc also received a lukewarm reception in its market debut in September, with shares of the biggest listing on U.S. exchanges so far this year opening below their offer price.

Goldman Sachs (NYSE:), (NYSE:), (NYSE:) and BofA Securities are among underwriters of Mobileye's offering.

The content of this article does not represent the views of fxgecko website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!

Related News

您正在访问的是FxGecko网站。 FxGecko互联网及其移动端产品是中国香港特别行政区成立的Hitorank Co.,LIMITED旗下运营和管理的一款面向全球发行的企业资讯査询工具。

您的IP为 中国大陆地区,抱歉的通知您,不能为您提供查询服务,还请谅解。请遵守当地地法律。