Intel plans an initial public offering for its self-driving technology company Mobileye Global, but values it at less than a third of what it previously expected. Intel stock fell Tuesday.
According to a regulatory filing late Monday, Intel plans to offer 41 million shares in the range of $18 to $20 a share, which would raise $820 million at the high end of the range. That places Mobileye's value at $16 billion, far below the $50 billion valuation Intel previously placed on the company.
Intel acquired Mobileye in March 2017 for about $15 billion.
The drop reflects the sharp slowdown in IPOs this year, which is the worst performance since 2008, according to Renaissance Capital.
The IPO market has been crushed due to market volatility, rising geopolitical tensions and economic weakness. Pressure also comes from rising interest rates, supply-chain disruptions, elevated commodity prices and recessionary fears.
Intel Stock Action
Intel stock dropped 2.1%, closing at 25.87 on the stock market today.
Mobileye says more than 117 million vehicles have been equipped with its technology. For the six-month period ended July 2, Mobileye reported revenue of $854 million, up 21% from the same period a year ago. It showed a net loss of $67 million.
The offering would be the largest technology IPO this year. Lead underwriters are Goldman Sachs and Morgan Stanley. It plans to list on the Nasdaq under the ticker MBLY.
Another big tech company expected to file for an IPO this year is online grocery company Instacart. In March, Instacart slashed its valuation to $24 billion, from $40 billion
Intel stock has an IBD Composite Rating of 14 out of a possible 99.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
