Intel’s Mobileye IPO Is Expected To Have a Significantly Lower Valuation

(CTN News) – There was a report in the Wall Street Journal citing people with knowledge of the matter on Monday that Intel Corp is looking at a valuation for its self-driving car unit Mobileye that is significantly lower than what was previously expected.

Originally, the company anticipated a valuation of approximately $50 billion.

However, it is now looking to achieve a valuation of under $20 billion and intends to sell fewer shares than it was originally expected to do.

It did not appear that Intel was able to respond immediately to Reuters’ request for comment.

The report states that the lower valuation is evidence of a downturn in the market for IPO listings.

This is because the tech IPO market is experiencing its longest drought in nearly two decades as a result of the low valuation.

Intel  was announced late last month that Intel Mobileye was planning to issue a U.S. initial public offering, with plans to list shares of the company under the ticker “MBLY” on the Nasdaq exchange.

Some of its clients include BMW, Audi, Volkswagen, Nissan, Honda, and General Motors, among others.

According to the Intel  Wall Street Journal, the company will also be holding a roadshow for potential investors on Tuesday, which will be one day later than expected.

The report was written by Deborah Sophia in Bengaluru, and edited by Shounak Dasgupta.

What is Intel’s Mobileye?

Mobileye, an -owned company that makes key processors for self-driving cars, has filed for an IPO, according to an SEC filing on Friday.

The move to list Mobileye on the Nasdaq is part of Intel’s broader strategy to turn around its core business.

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