Intel is rumored to have valued autonomous driving unit Mobileye at less than $20 billion: far lower than expected

Early morning news on October 18, Beijing time, according to sources familiar with the situation, Intel plans to IPO (initial public offering) its autonomous vehicle unit Mobileye at a valuation far lower than previously expected.

Sources said Intel originally 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 downgrade of Mobileye's valuation highlights the downturn in the new stock issuance market - currently, the technology stock IPO market is facing the most serious "drought" in the past 20 years.

At the end of last month, Mobileye announced that it had submitted application documents for an IPO in the United States. The company plans to be listed on Nasdaq under the stock code "MBLY". According to reports, the company still plans to start trading on Nasdaq on October 26.

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

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

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

Mobileye was founded in 1999, and its customers include BMW, Audi, Volkswagen, Nissan, Honda and General Motors. In 2017, Intel acquired the company for approximately $15.3 billion.