"'This Year's Final Major IPO' Intel's Mobileye Sets Offering Price at $21"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The offering price of 'Mobileye,' the autonomous driving subsidiary of U.S. semiconductor company Intel, has been set at $21, the Wall Street Journal (WSJ) reported on the 25th (local time), citing multiple sources. Mobileye will be listed on the Nasdaq market in New York on the 26th.

According to the report, Mobileye decided on an offering price of $21 (approximately 30,000 KRW), which is lower than the initial price when the company first decided to go public but slightly higher than the $18-$20 range recently reported by WSJ. Mobileye will sell 41 million shares, raising $861 million. The company's valuation stands at around $17 billion, higher than the $15 billion Intel paid when acquiring it in 2017, but significantly lower than the $50 billion valuation estimated before the IPO.

The significant reduction in Mobileye's offering price and valuation appears to be due to the current U.S. stock market's weakened investor sentiment amid recession concerns. Research firm Dealogic forecasted that the scale of IPOs in the U.S. this year would amount to only $7.4 billion, marking the worst year in decades. WSJ expects Mobileye to be the last major IPO of the year.

Mobileye is an Israeli autonomous driving specialist company acquired by Intel in 2017. Its revenue in the first half of this year was $854 million, a 21% increase compared to the same period last year, while recording a net loss of $67 million during this period. Earlier, Intel CEO Pat Gelsinger stated, "Intel does not need the funds raised through Mobileye's IPO. The listing will increase Mobileye's recognition and attract more business."

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