GlobalFoundries, Mubadala raise $2.6bn in US exchange IPO

By Arya M Nair, Intern Reporter
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GlobalFoundries, a leading chipmaker and its major shareholder, Mubadala Investment have raised over $2.6 billion in an initial public offering (IPO), pricing its shares at the top of a marketing range.

After marketing the shares for $42 to $47, the company and Mubadala sold 55 million for $47 each. Based on the outstanding shares mentioned in its filings with the US Securities and Exchange Commission, GlobalFoundries has a market value of more than $25 billion at $47 per share.

According to reports, the IPO is the third-largest on a US exchange this year, topped only by South Korean e-commerce firm Coupang’s $4.55 billion IPO and Chinese ride-hailing company DiDi Global’s $4.44 billion raise.

GlobalFoundries sought to sell 33 million shares, while Abu Dhabi’s Mubadala planned to sell 22 million. After the IPO, Mubadala will own more than 89 percent of the company’s stock.

The company was formed when Mubadala acquired Advanced Micro Devices Inc’s production facilities in 2009 and merged them with Singapore’s Chartered Semiconductor Manufacturing Ltd. 

The IPO arrived at a time when chip demand has soared as a result of a global shortage that has caused automakers and other electronics companies to reduce production. Strong demand for chips boosted revenue at GlobalFoundries over the past 12 months and helped it cut back losses.

GlobalFoundries is the world’s third-largest foundry by revenue, after Taiwan Semiconductor Manufacturing Co and Samsung Electronics. It fabricates semiconductors for large technology companies such as Apple and Amazon.

The IPO was being led by Morgan Stanley, Bank of America, JPMorgan Chase & Co., Citigroup and Credit Suisse Group. The company’s shares are expected to begin trading on the Nasdaq under the symbol GFS.

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