(Bloomberg) — Intel Corp. is scaling back expectations for its Mobileye initial public offering in the face of a broader stock slump and could delay the share sale until next year if conditions don’t improve, people familiar with the process said.
Most Read from Bloomberg
The company expects the IPO to value the self-driving technology business at as much as $30 billion — less than originally hoped — according to the people, who asked not to be identified because the deliberations are private. The original plan was to offer the stock around the middle of 2022, and Reuters and others reported potential valuations of more than $50 billion.
Intel Chief Executive Officer Pat Gelsinger is trying to capitalize on the Israel-based business, acquired in 2017, with a partial spinoff of its shares. Mobileye makes chips for cameras and drive-assistance features, and is seen as a prized asset as the car industry races toward fully automated vehicles. But Intel is running up against a bear market for chip stocks and a dearth of IPOs, making it harder to complete the deal.
If semiconductor stocks rebound, the offering could still be possible in 2022, according to the people. Otherwise, it will be pushed back.
Intel shares fell as much as 1.1% to $31.10 on Monday, reaching session lows, after Bloomberg reported the news. The stock recouped most of the losses by 1:45 p.m. in New York.
Representatives for Mobileye and Santa Clara, California-based Intel declined to comment.
A successful Mobileye IPO could clear a growing logjam of chip-related assets waiting to come to market. SoftBank Group Corp. also is trying to sell shares of semiconductor designer Arm Ltd. by early next year. Ampere Computing LLC, a startup making processors for data centers, is planning an IPO as well.
For Intel’s Gelsinger, a successful IPO would help show his turnaround plan is bearing fruit. The company has suffered from sliding sales and earnings, along with the loss of market share to rivals such as Advanced Micro Devices Inc. The CEO has outlined an ambitious spending plan to rebuild Intel’s manufacturing prowess, get into new businesses and restore its technological leadership.
Intel will remain the majority owner after the transaction, which involves an offering of newly issued Mobileye stock, the company said in December.
The majority of the proceeds will be retained by Intel, Gelsinger has said, but Mobileye will be given a balance sheet that allows it to fuel its expansion plans, he said.
Mobileye has been a particularly bright spot. The business, acquired for about $15 billion, has consistently grown faster than its parent, which is on course to report a revenue decline of as much as 16% this year. In the second quarter, Mobileye posted sales of $460 million, a gain of 41% from a year earlier. That helped operating income rise 43% to $190 million.
Intel’s shares have lost 39% of their value this year, worse than chip stocks overall. The Philadelphia Stock Market Semiconductor Index is down 31% in 2022.
(Updates Intel shares in fifth paragraph.)
Most Read from Bloomberg Businessweek
(C)2022 Bloomberg L.P.
U.S. IPO market braces for biggest deal of the year in AIG unit Corebridge Financial’s $1.8 billion offering
The U.S. initial public offering market is bracing for what’s expected to be the biggest deal of the year so far, that of the spin-off of AIG’s life insurance unit Corebridge Financial , which is aiming to raise $1.8 billion. “At the expected deal size it’ll represent over a quarter of all 2022 IPO proceeds,” said Bill Smith, co-Founder and CEO of Renaissance Capital, a provider of institutional research and IPO exchange traded funds, in commentary. “J.P. Morgan is lead left, but there are 43 ba
The Wall Street Journal
Shares of British online grocer Ocado are sinking, plunging almost 11% in morning trading Tuesday after the company warned that it expects to see a decline in full-year sales as _**inflation hits consumers’ spending ability**_. Ocado is the brainchild of three former Goldman Sachs bankers. The company has a [_**two-pronged model**_](https://www.wsj.com/articles/ocado-looks-overseas-to-drive-profit-1435672167?mod=wsj_nview_latest): it _**sells groceries directly**_, much like many of its online r
In this article, we will take a look at the 10 best penny stocks to buy in September. If you want to skip our discussion on the current US economic situation, go directly to the 5 Best Penny Stocks to Buy in September. The US equity markets have been experiencing a sell-off in the past three […]
Wall Street extended its winning streak on Monday, rallying to a sharply higher close as investors awaited crucial inflation data that could provide clues about the duration and severity of the Federal Reserve’s tightening policy. Energy and technology shares helped the three major U.S. stock indexes touch two-week highs and notch their fourth straight session of gains, in which growth stocks were slightly favored over value. The Labor Department’s consumer price index (CPI), expected before Tuesday’s opening bell, is this week’s main event, and will be scrutinized for any signs regarding the number and size of future interest rate hikes from the Fed.
Lilian Leung, portfolio manager for China income fund at JPMorgan Asset Management, discusses the rebound in Chinese markets, her investment strategy and her outlook for the yuan. She speaks on Bloomberg Television.
Lower car prices might be cheered by car buyers, but they could also mean the Federal Reserve is pushing too hard against inflation, says ARK Invest CEO Cathie Wood.
Investors with Vanguard mutual funds in their portfolios are in line to receive some extra cash later this month. The company announced Friday that extra distributions of capital gains and dividends will be paid to the shareholders of 34 different … Continue reading -> The post Here’s Who Will Get Additional Income From Vanguard This Month appeared first on SmartAsset Blog.
(Bloomberg) — Goldman Sachs Group Inc. sees China persisting with its zero-tolerance approach to Covid-19 following a key Communist Party meeting next month, with the bank’s economists playing down expectations of any major policy shifts immediately after the congress. Most Read from BloombergThe World’s Hottest Housing Markets Are Facing a Painful ResetJeff Bezos’s Blue Origin Rocket Suffers Failure Seconds Into Uncrewed LaunchUkrainian Successes Raise Russian Collapse to Realm of PossibilityR
UK teeters on edge of recession after ‘feeble’ rebound FTSE 100 jumps 1.3pc; Pound slumps against euro Roger Bootle: We face a succession of Black Wednesdays – but good things can come out of bad Sign up here for our daily business briefing newsletter
Even though the Inflation Reduction Act of 2022 is in effect, markets can have a way of determining whether the plan works or not. Not that it’s expected, but if the oil and natural gas markets become even more volatile than they are — with Russia and Europe at odds — it’s a concern if you’re thinking about the possibilities of higher prices. That’s probably the most obvious example of a reason to be considering an inflation hedge as part of a diversified investment plan. It doesn’t look like cr
Investors get the latest U.S. inflation figures on Tuesday, which will set the seal – or not – on a third consecutive 75 basis point rate hike from the Fed, and set the tone for global markets for the next several weeks. Core inflation is expected to be a little stickier. But that was the consensus forecast before the New York Fed’s latest survey of consumers’ inflation expectations was released on Monday.
Some financial assets, like bank accounts and retirement portfolios, are designed to pass from one person to another. This designated recipient is known as a “beneficiary,” meaning that you have named the person who will take possession of any given … Continue reading -> The post What Happens to a Bank Account When Someone Dies Without a Beneficiary? appeared first on SmartAsset Blog.
(Bloomberg) — Cheniere Energy Inc. boosted its full-year 2022 profit forecast beyond analysts’ expectations as the largest US exporter of liquefied natural gas said some shipments will depart sooner than anticipated. The shares rose. Most Read from BloombergThe World’s Hottest Housing Markets Are Facing a Painful ResetUkrainian Successes Raise Russian Collapse to Realm of PossibilityJeff Bezos’s Blue Origin Rocket Suffers Failure Seconds Into Uncrewed LaunchRussian Defenses Crumble as Ukraine R