© Stocksak. Intel (INTC), Priced Mobileye IPO at $21 per Share, Company Valued At $17 Billion
By Senad Karaahmetovic
The company released a press release stating that Intel (NASDAQ: ) raised $861million by selling 41 million shares in Mobileye. The price of shares sold by the chipmaker was $21 per share, which is one dollar more than the $18-20 range indicated in the IPO filing.
Mobileye was valued at $17billion, approximately 10% more than the $15.3billion that Intel paid for it. The company develops advanced driver-assistance technologies and autonomous driving technologies.
The valuation is still significantly lower than what Intel originally intended to achieve for its Mobileye business unit. Bloomberg News reported in January that Intel will launch its Mobileye IPO despite the difficult macro environment. The company is valued at around $30 billion.
Another report followed, stating that Mobileye’s market value is less than $30 billion. The chipmaker changed the IPO to sell fewer shares that was originally planned. After the offering, Intel will keep a 94-95% share in Mobileye.
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.