Intel (INTC) Priced Mobileye (MBLY) IPO at $21 a Share, Company Valued at $17 Billion

October 26, 2022 5:31 AM EDT

Intel (NASDAQ: INTC) raised $861 million by selling 41 million shares of Mobileye (NASDAQ: MBLY), the company said in a press release. The chipmaker was selling shares at $21 each, which is a dollar above the top of the $18-20 indicated range in the IPO filing.

This way, Mobileye was valued at $17 billion, about 10% higher relative to the $15.3 billion that Intel paid for the business, which develops autonomous driving technologies and advanced driver-assistance systems.

However, the valuation is significantly lower than the $50 billion that Intel originally hoped to achieve for its Mobileye unit. Bloomberg News reported earlier this year that Intel will proceed with Mobileye IPO despite a difficult macro environment, valuing the company at around $30 billion.

Another report followed to note that the market is likely to value Mobileye at less than $30 billion. However, the chipmaker adjusted the IPO to ultimately sell fewer shares than planned. Intel will retain a 94-95% stake in Mobileye after the offering.

The Wall Street Journal reported that Intel and underwriters were focused on shares to trade well, hence they weren’t too bothered by a relatively low valuation.

By Senad Karaahmetovic

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