Intel slashed the valuation of Mobileye

According to sources familiar with the situation, Intel plans to its self-driving car unit Mobileye at a valuation much lower than the previously expected IPO (initial public offering) listing. Intel initially expected Mobileye to be valued at about $50 billion, but is now targeting less than $20 billion and will sell fewer shares in the IPO than originally planned, the sources said.

The cut in Mobileye's valuation underscores the sluggish picture in the IPO market, which is now facing its worst "drought" in nearly 20 years.

At the end of last month, Mobileye announced that it had filed for a U.S. IPO, and the company plans to list on the Nasdaq under the ticker symbol "MBLY." According to reports, the company still plans to start trading on the Nasdaq on October 26.

Mobileye plans to kick off a roadshow to potential investors on Tuesday, a day later than previously expected, the sources said.

Intel is scheduled to announce its third-quarter earnings on October 27 after the US Eastern Time (early morning on October 28, Beijing time). According to data provided by financial market data information and infrastructure provider Refinitiv, Intel's earnings report at that time is expected to show a decline in its revenue due to the downturn in the PC market and the disruption of the supply chain.

Intel CEO Pat Gelsinger said last year that the company would keep most of the proceeds from Mobileye's IPO and use some of it to build more chip factories.

Founded in 1999, Mobileye's customers include BMW, Audi, Volkswagen, Nissan, Honda, and General Motors. In 2017, Intel acquired the company for about $15.3 billion.

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