Mobileye, an Intel subsidiary developing technology for self-driving vehicles, announced that the company is offering 41 million Class A common stock at an initial public offering (IPO) price of USD 21 per share— USD 1 above the target range —to raise USD 861 million. The shares will begin trading on the Nasdaq on October 26, under the ticker “MBLY.”

The IPO values the company at USD 16.7 million—one-third of its initial expectations amid stock market volatility and rising interest rates. 

The company intends to use the proceeds to settle debt to its parent Intel, working capital needs, and corporate expenses.

Intel’s autonomous driving unit Mobileye offers cameras, computer chips, and software for autonomous driving technologies and advanced driver assistance systems (ADAS). Its technology is currently being used by 50 companies across 800 vehicle models.

Analyst QuickTake: Intel acquired then publicly listed Mobileye in March 2017 (delisted thereafter) for USD 15.3 billion to develop self-driving technology for automotive companies. Mobileye originally debuted on the Nasdaq in 2014 at a USD 5.31 billion valuation. Prior to today's news, Mobileye unveiled its filing for the IPO in September but was reportedly targeting a much higher valuation of around USD 50 billion.