Intel Expects Mobileye Valuation of 41.3 Trillion Won for 'IPO Push'... Timing May Be Delayed

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] U.S. semiconductor company Intel estimates the valuation of its autonomous driving technology subsidiary Mobileye, which is pursuing an initial public offering (IPO), at around $30 billion (approximately 41.3 trillion KRW), Bloomberg reported on the 12th (local time). Due to soaring inflation and recession concerns causing the stock market to decline, there is even a possibility that the IPO timing will be postponed to next year.

Bloomberg, citing multiple sources, reported that Intel's plan for Mobileye's IPO was scheduled for mid-this year. Intel, which disclosed its Mobileye IPO plan last year, submitted IPO application documents to the U.S. Securities and Exchange Commission (SEC) in March and has been preparing for the listing in earnest. The market had expected Mobileye's valuation to reach $50 billion, but as the stock market froze this year, it appears Intel decided to lower that estimate.

Bloomberg reported that Intel is facing difficulties in pushing forward Mobileye's IPO due to the decline in semiconductor stocks and a lack of IPOs in the market. Sources said that if semiconductor stocks rebound, the listing could happen this year, but otherwise, the timing will be postponed. Intel's stock price has fallen 39% this year, and the Philadelphia Semiconductor Index has dropped more than 30% compared to the beginning of the year.

Mobileye's IPO is attracting attention in the semiconductor industry. This is because Japan's SoftBank Group is preparing for the listing of the UK semiconductor company ARM early next year, and Ampere Computing, a data center processor manufacturer, is also preparing for an IPO. Intel announced in December last year that it will remain the major shareholder even after Mobileye's listing.

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