Intel has more than halved its IPO valuation for Mobileye as it is about embark on a roadshow.
The valuation is now less than $20 billion, down from about an original amount of about $50 billion, sources told The Wall Street Journal. Also, fewer shares will be sold than earlier expected.
The goal is to begin trading shares on Oct. 26.
Initial Public Offerings in the US are having one of the worst years on record, raising the least money since 1995, according to Dealogic. Rising inflation and interest rates, fears of recession and plummeting prices for tech stocks including self-driving car companies are among the main reasons for the decline.
Mobileye’s revenues were $854 million for the first two quarters of the fiscal year, an improvement of 21% over a year earlier. Intel had acquired Mobileye in 2017 for $15.3 billion.
The drop in Mobileye’s valuation comes after Crunchbase analyzed 14 self-driving vehicle tech companies that went public over the last two years and found an average 80% decline in the post-IPO valuation.
The biggest drop by dollars was Aurora, which dropped from its IPO valuation of $14 billion to $2.6 billion as of Oct. 10.