Intel is Considering Significant Downward Revision of Mobileye's Valuation Ahead of IPO

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] According to multiple sources cited by the Wall Street Journal (WSJ) on the 17th (local time), U.S. semiconductor company Intel is reportedly considering significantly lowering the valuation of its autonomous driving subsidiary Mobileye, which is preparing for an initial public offering (IPO).

According to the report, Intel initially valued Mobileye at $50 billion (approximately 71.4 trillion KRW), but is now discussing lowering it to below $20 billion and drastically reducing the number of shares to be issued compared to the original plan. Sources explained that the intention is to attract investor interest by listing a small number of shares at a lower price.

Since Intel CEO Pat Gelsinger mentioned that the purpose of the Mobileye IPO is more about increasing awareness of the autonomous driving division and securing business rather than raising funds, it appears they are focusing on the success of the offering.

The source added that Mobileye’s postponement of its investor presentation to the 18th, one day later than originally scheduled, also reflects the situation ahead of the IPO. However, the planned listing date is still targeted for the 26th.

The WSJ evaluated that Mobileye’s case will serve as a test for the IPO market, which has been hit by soaring inflation, rising interest rates, recession fears, and stock price crashes. According to research firm Dealogic, the U.S. IPO market is experiencing its worst year, with fundraising expected to hit the lowest level since 1995.

In the first half of this year, Mobileye’s revenue was $854 million, a 21% increase compared to the same period last year, while recording a net loss of $67 million during this period.

This content was produced with the assistance of AI translation services.