Intel Valued Mobileye at $17 billion With Its $21 IPO Price

In a news release, Intel (NASDAQ:INTC) sold 41 million Mobileye shares for $861 million. The chipmaker sold shares at $21, a dollar above the IPO filing’s $18 to $20 range.

According to a news statement, Intel (NASDAQ:INTC) raised $861 million by selling 41 million shares of Mobileye. The chipmaker was selling shares at $21 a share, a dollar more than the upper end of the $18 to $20 range indicated in the IPO filing.

Intel paid $15.3 billion for Mobileye, a company that develops autonomous driving technologies and advanced driver-assistance systems. Mobileye was valued at $17 billion, approximately 10% more than Intel paid.

However, the price is much less than the $50 billion that Intel had planned to obtain for its Mobileye subsidiary. Earlier this year, Bloomberg News reported that Intel will proceed with Mobileye’s IPO despite a challenging macroeconomic environment, pricing the firm at approximately $30 billion.

The market is anticipated to value Mobileye at less than $30 billion, per a subsequent report. However, the chipmaker modified the IPO to sell fewer shares than anticipated. After the offering, Intel will retain a 94-95% ownership in Mobileye.

According to the Wall Street Journal, Intel and underwriters were primarily concerned with the performance of the stock, hence they were unconcerned with the comparatively low valuation.

Leave a Comment

111111