The Mobileye initial public offering, a spinoff by Intel, priced 41 million shares at $21 each, above the high end of its estimated range, the Wall Street Journal reported Wednesday. INTC stock dipped.
The IPO raised $861 million and valued the company at about $17 billion, both above expectations, the Journal reported.
Analysts expected the Mobileye IPO to have a valuation of $16 billion. Intel recently priced Mobileye shares in the range of $18 to $20.
INTC Stock: IPO Valuations Down
Mobileye's valuation stands in sharp contrast with 2021, when it was initially valued at about $50 billion. That was cut to $30 billion earlier this year.
The drop reflects the drastic slowdown in IPOs this year, which are having their worst year since 2008, according to Renaissance Capital. Factors include rising inflation and high interest rates.
Intel acquired Mobileye five years ago for $15.3 billion.
INTC stock edged down 0.7%, to close at 27.21 on the stock market today.
Mobileye develops and makes advanced driver-assistance systems and autonomous-driving technologies. The Mobileye IPO filing says competitors include Apple, Sony, Waymo and Tesla.
Mobileye Revenue Up 21%
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 is the largest U.S. technology IPO this year. Lead underwriters are Goldman Sachs and Morgan Stanley.
Recently, Germany's Volkswagen spun off its Porsche business. Another big tech company that was 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. But reports say Instacart has decided not to go public this year.
INTC stock is down 48% this year.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
