Intel Slashes Mobileye IPO Valuation To Below $16 Billion

Intel has lowered the valuation of its autonomous vehicle firm Mobileye Global even further than expected, ahead of its public listing on the Nasdaq on 26 October.

Intel revealed the significantly lower valuation in a regulatory filing on Tuesday, in which it stated it expects the offering to be priced between $18 and $20 per share, valuing Mobileye at $15.9 billion.

This is well below the expected $50 billion valuation when Intel first announced in December 2021 its intention to take its Mobileye unit public.

IPO valuation

Earlier this week it was reported that Intel was eyeing a valuation significantly lower than the $50bn, and had targetted a valuation under $20 billion.

This lower valuation reflected the depressed IPO market at present, amid high interest rates, inflation, and investor worries over a potential global recession.

Now Intel has revealed the new valuation of nearly $16bn, and it is offering 41 million shares of Mobileye common stock.

Mobileye last month stated it would list on the Nasdaq under the ticker “MBLY”.

It hopes to raise up to $820 million, which it will use for working capital and corporate purposes, Intel was quoted by CNBC as saying in its filing.

Intel fully intends to remain the majority owner of Mobileye, and the two companies will continue as strategic partners, collaborating on projects as they pursue the automotive sector.

Mobileye, founded in 1999, builds chips, hardware and software for self-driving cars and advanced safety features such as lane-keeping and driver assistance.

Mobileye has partnerships with car makers such as Audi, BMW and Volkswagen, and its technology is currently in 800 vehicle models, it said in the filing.

Second listing

Intel had signalled its intention to compete in the autonomous vehicle sector back in 2017, when it carried out the biggest tech takeover in Israel’s history, with the $15.3 billion acquisition of Mobileye.

And it should be noted that any floatation will be the second time that Mobileye has braved the public markets.

Mobileye originally went public in 2014, but returned to private ownership when it was acquired by Intel in 2017.

Intel is slated to report its third-quarter results on 27 October, when the chipmaker is expected to post a drop in revenue, amid a slump in the PC market and supply-chain issues.

In February this year it was reported that Mobileye planned to work with partners to build and deploy self-driving electric shuttles in the US in 2024.

Executives consider electric shuttles a way for Mobileye to expand its automated driving system beyond taxis and delivery vehicles.