Intel is facing a significantly lower valuation for the initial public offering (IPO) of its self-driving car unit Mobileye, the Wall Street Journal news report said.
Mobileye, which was originally expected to fetch roughly $50 billion valuation, is now set to target less than $20 billion valuation. Intel will be selling a smaller number of shares than originally planned.
Intel declined to comment.
The lower valuation underscores the downturn in the market for new listings, with the tech IPO market facing its worst drought in nearly two decades.
Mobileye, which last month unveiled its filing for a U.S. IPO with plans to list shares on Nasdaq under the ticker “MBLY”, is aiming for the shares to begin trading on Oct. 26.
Mobileye plans to launch its roadshow for prospective investors on Tuesday, a day later than anticipated.
Intel is slated to report its third-quarter results on Oct. 27, when the chipmaker is expected to post a drop in revenue, following a slump in the personal computer market and supply-chain snarls.
Intel will keep most of the money from the Mobileye IPO and use some of those funds to build more chip plants, Chief Executive Pat Gelsinger said last year.
Founded in 1999, Mobileye has customers such as BMW, Audi, Volkswagen, Nissan, Honda and General Motors. Intel bought Mobileye for $15.3 billion in 2017.