Intel slashes Mobileye IPO valuation down to $16 billion

Intel's Mobileye said on Tuesday it was targeting a valuation of nearly $16 billion in its initial public offering, less than a third of what it had previously expected, as volatility in stock markets and rising interest rates dampen the appetite for new listings.

The self-driving unit of Intel said in a regulatory filing it is offering 41 million shares of common stock priced between $18 and $20 per share, aiming to raise up to $820 million, based on the top end of the proposed range of the listing.

Reuters, citing sources, had reported in April that the stock market flotation could value Mobileye at as much as $50 billion.

The move sets the stage for what is expected to be the biggest technology listings of this year amid a market rout that has sapped the appetite for deals, as companies struggle with rising interest rates and increased investor scrutiny on profitability after a stellar 2021.

IPOs by U.S. technology companies have sunk to their lowest levels since the global financial crisis of 2008, as several companies have shelved plans for their listings in the country.

According to Refinitiv data, tech IPOs this year have raised $507 million, the lowest amount that has been raised through flotation since 2000.

Greek yogurt maker Chobani withdrew its plans for a U.S. IPO in September, while several other big names such as Reddit and ServiceTitan have reportedly delayed their plans to go public this year.

Goldman Sachs, Morgan Stanley, Citigroup and BofA Securities are among underwriters of Mobileye's offering.