Intel Corporation INTC trimmed it initial public offering Evaluation of his self-driving car unit mobileye, This underscores the struggles of the IPO market amid the sell-off in stocks.
What happened: Intel is now targeting a valuation below $20 billion and will sell fewer shares than originally planned, according to the Wall Street Journal reported, citing people familiar with the matter. The chipmaker and its advisors believe selling fewer shares at a discounted price could increase interest in the IPO, the report added.
The date for the start of the roadshow for the offering has also reportedly been pushed back by a day. Regardless, Intel expects Mobileye shares to trade on Oct. 26, the report said.
After holding its ground for some time in tough market conditions, Intel decided to take the plunge after Monday’s rally that saw major averages surge on expectations of a positive third-quarter earnings season.
Why it matters: Intel filed a preliminary prospectus with the SEC for Mobileye’s IPO on September 30, although late last year it made public its intention to spin off the Israeli company.
Though Intel has yet to confirm the size and pricing of the IPO, initial reports say the company is targeting a $50 billion valuation. It was supposed trimmed to $30 billion until the company officially applied for an IPO.
The WSJ reported that Mobileye could amend its S-1 filing as early as Tuesday to accommodate the scope and pricing of the offering.
Mobileye, founded in 1999, had entered the US public market in 2014 only to be swept off the streets after its acquisition by Intel in 2017 in a $15.3 billion deal. The company grew its revenue by 43% to $1.4 billion in 2021 and generated adjusted income of $474 million.
The US IPO market is going through a lean period…
