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　　On October 18, Mobileye, an advanced driver assistance system and autonomous driving technology company, said it had finalized the terms of an IPO with a target valuation of about $16 billion.

　　Mobileye plans to offer 41 million Class A shares in the IPO at an expected price of between $18 and $20, according to what Mobileye has shown in regulatory filings. Mobileye expects to have 46.26 million Class A shares outstanding and 750 million Class B shares after the IPO, with 1 vote per Class A share and 10 votes per Class B share, with Intel owning all Class B shares. The IPO is expected to raise up to $820 million.

　　Mobileye also said that the company will use an unspecified amount in the IPO to repay Intel to offset part of the $3.5 billion previously lent by the parent company; the rest of the funds will be used for company operations. Intel said the company has agreed to convert part of the outstanding debt into Mobileye equity.

　　It is worth noting that compared with the $50 billion that Intel first announced in its IPO earlier this year, Mobileye's IPO valuation has come to a low of no more than 1/3 of its previous valuation.

　　There is a view that the low expectations are caused by a decline in market interest in new stock listings due to stock market volatility and rising interest rates.

　　Tech IPOs in the U.S. this year raised just $507 million in total, the lowest since 2000, according to data from Refinitiv. Major companies, including Reddit and Titan, have delayed listings originally scheduled for this year.

　　This also means that Mobileye's IPO will still be the largest U.S. technology IPO this year, even if the expected valuation shrinks by a third.

　　"The IPO market (this year) is a backwater, and activating it may require the participation of a heavyweight player at the same level as Facebook or Uber," said Jared Carmel, managing partner at Manhattan Venture. "In a volatile environment, most companies Lack of courage to move forward."

　　Mobileye's insistence on IPOs in an overall declining environment may have something to do with its continued business performance improvement. In 2021, the company reported revenue of $1.4 billion, a 43% increase from 2020 and a 57% increase from the year before the outbreak, according to Mobileye.

　　In terms of profitability, although the company is losing money, last year's net loss fell to $75 million from $196 million in 2020 and $328 million in 2019, and continued to increase this year - Mobileye achieved revenue in the first half of this year 854 million US dollars, a year-on-year increase of 21.31%. However, during the same period, the profitability dropped by 614.29%, and the operating loss was US$36 million.

　　The continuous growth of revenue but the inability to achieve profitability is not convincing enough in this year's market. Bankers and investors stressed that companies trying to go public should at least show a clear path to profitability in the recent recession.

　　There are 24 underwriters for the Mobileye IPO, led by Goldman Sachs Group Inc. and Morgan Stanley. Citigroup and Bank of America Securities are also on the list.