– Intel’s Mobileye said on Tuesday it is targeting a valuation of nearly $16 billion for its initial public offering as stock market volatility and rising interest rates have dampened the appetite for new listings.
Intel’s self-driving division will offer 41 million shares of its common stock at a price of $18 to $20 per share, and sell up to 800 million shares based on the proposed listing range cap, in a regulatory filing. It said it is aiming to raise $20 million.
Citing sources, Reuters reported in April that a stock market listing could value Mobileye as much as $50 billion.
The move comes amid a market crash that sapped appetite for trading as companies struggled with rising interest rates and investor scrutiny over profitability after a glorious 2021. Prepare for what is expected.
U.S. tech IPOs have fallen to their lowest level since the 2008 global financial crisis. This is because several companies have shelved plans to list domestically.
Tech IPOs this year raised $507 million, according to Refinitiv data.
Greek yogurt maker Chobani withdraws plans to US IPO Meanwhile, several other big names such as Reddit and ServiceTitan have reportedly postponed their plans to go public this year.
Corebridge Financial Inc also received a lukewarm reception for its market debut in September, with the largest listed stock on a US exchange so far this year opening below its offer price.
Goldman Sachs, Morgan Stanley, Citigroup and BofA Securities are among the underwriters of Mobileye’s offering.