Intel unit Mobileye prices IPO above range to raise $861 million -source By Reuters

[ad_1]

© Reuters. FILE PHOTO: The Mobileye logo is seen during the Munich Auto Show, IAA Mobility 2021, in Munich, Germany, September 7, 2021. REUTERS/Wolfgang Rattay/File Photo

By Echo Wang

NEW YORK (Reuters) – Mobileye Global Inc, the self-driving unit of chip maker Intel Corp (NASDAQ:), raised $861 million in an initial public offering (IPO) on Tuesday, braving the trading volatility that has thwarted many stock market hopefuls. 

Mobileye priced 41 million shares at $21 per share, the source said, requesting anonymity ahead of an official announcement. The company had previously guided the IPO could be priced at between $18 and $20 per share.

The IPO values Mobileye at $16.7 billion, a far cry from the $50 billion valuation that Intel was initially hoping to achieve.

But Mobileye is selling only a 5% stake in itself, less than the typical 10% to 20% stake sale seen in most IPOs. This means that the financial hit it will take as a result of its lower valuation will be limited.

Mobileye did not immediately respond to a request for comment.

[ad_2]

Image and article originally from www.investing.com. Read the original article here.

By Reuters