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GlobalFoundries Announces Launch of Initial Public Offering

Daniel Nenni

Admin
Staff member
MALTA, N.Y., Oct. 19, 2021 /PRNewswire/ -- GlobalFoundries® (GF®), a global leader in feature-rich semiconductor manufacturing, today announced the commencement of its initial public offering of 55,000,000 ordinary shares, 33,000,000 of which are being offered by GF and 22,000,000 of which are being offered by GF's existing shareholder, Mubadala Investment Company PJSC, pursuant to a registration statement on Form F-1 filed with the U.S. Securities and Exchange Commission ("SEC"). The initial public offering price is currently expected to be between $42.00 and $47.00 per share. In connection with the offering, Mubadala expects to grant the underwriters a 30-day option to purchase up to an additional 8,250,000 ordinary shares at the public offering price, less underwriting discounts and commissions. GF has applied to list its ordinary shares on the Nasdaq Global Select Market under the ticker symbol "GFS."

Morgan Stanley, BofA Securities, J.P. Morgan, Citigroup and Credit Suisse are acting as active book-running managers for the proposed offering. Deutsche Bank Securities, HSBC and Jefferies are acting as additional book-running managers for the proposed offering. Baird, Cowen, Needham & Company, Raymond James, Wedbush Securities, Drexel Hamilton, Siebert Williams Shank and IMI – Intesa Sanpaolo are acting as co-managers for the proposed offering.

The proposed offering will be made only by means of a prospectus. Copies of the preliminary prospectus, when available, may be obtained from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014; BofA Securities, Inc., NC1-004-03-43, Attention: Prospectus Department, 200 North College Street, 3rd Floor, Charlotte, NC 29255 or by email at dg.prospectus_requests@bofa.com.; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 866-803-9204 or by email at prospectus-eq_fi@jpmchase.com; Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (800) 831-9146 or by email at prospectus@citi.com; or Credit Suisse Securities (USA) LLC, Attn: Prospectus Department, Eleven Madison Avenue, 3rd Floor, New York, NY 10010, by telephone at 800-221-1037 or by email at usa.prospectus@credit-suisse.com.

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements
This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.

About GF:
GlobalFoundries Inc. (GF) is one of the world's leading semiconductor manufacturers. GF delivers feature-rich solutions that enable its customers to develop innovative products for pervasive chips for high-growth markets. GF provides a broad range of feature-rich process technology solutions with a unique mix of design, development and fabrication services. With an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its customers across the globe.

SOURCE GlobalFoundries (GF)
 

hist78

Well-known member
I still say they will be acquired, Intel or Samsung or ???
Based on the IPO price, the valuation of GF is at $25.1 billion. And GF lost $1.35 billion on a $4.85 billion revenue in 2020. It's probably too expensive and too much trouble for Intel or Samsung to swallow. Unless GF's stock price drops significantly from the IPO price in the future and consequently reduces GF's valuation to a much lower level.

 
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prime007

Active member
I can not think of any reason to buy those stock. Crazy. Losing money during shortage.
Well...there are apparently some takers. But don't get me wrong...I'm not touching GlobalFoundries either.
At $47 a share, GlobalFoundries’ valuation could soar to $25.1 billion. BlackRock (BLK), Columbia Management Investment Advisers, Fidelity Management & Research, Koch Industries, and Qualcomm (QCOM) are interested in buying $1.05 billion worth of Global shares at the IPO price, the prospectus said. Silver Lake, meanwhile, has agreed to buy $75 million worth of stock in a private placement.
EDIT @ 4:01 AM EST: Thanks for the link, hist78!
 

Daniel Nenni

Admin
Staff member
I was a little surprised that Mubadala is intending to maintain 90% ownership of GF -- attempt to raise $2.5B for 10% and retain the rest?
 

hist78

Well-known member
I was a little surprised that Mubadala is intending to maintain 90% ownership of GF -- attempt to raise $2.5B for 10% and retain the rest?
Each company's IPO has different purposes and goals. For Globalfoundries' IPO, I think the major purpose is to allow Mubadala to exit out with less loss. They know it's almost impossible to recover all the loss accumulated over the yeas but they don't want to release too may shares to cause the market to think they are dumping. With the smaller number of IPO shares, it's much easier to manage the expectation and find enough friendly investors to help out. Later, after IPO, they can gradually sell more shares through open market or other channels. Even the government can be a stockholder too.
 

hist78

Well-known member
It's going to be a very challenging climate for Globalfundries' IPO. Considering the market doesn't treat Intel's stock and market cap nicely even though Intel is making a lot of money and has so much technology capabilities in-house.
 

Barnsley

New member
Wonder how many shares Temasek , the Singapore Sovereigm Wealth Fund , lined up to buy?

Govt sunk in a big hole when it was Chartered Semi , will they get back on the horse?
 

hist78

Well-known member
Wonder how many shares Temasek , the Singapore Sovereigm Wealth Fund , lined up to buy?

Govt sunk in a big hole when it was Chartered Semi , will they get back on the horse?
Why don't they buy Intel's shares if they are willing to take risks? Intel are making decent money and has dividends.
 

hist78

Well-known member
Looks like GlobalFoundries will begin trading today!
At 11:49AM (New York time), There is no trading activity for GFS and the price quote said GFS is in "Trading Held" status. Is it normal for a first day trading?
 

hist78

Well-known member
At 11:49AM (New York time), There is no trading activity for GFS and the price quote said GFS is in "Trading Held" status. Is it normal for a first day trading?
Globalfundries' shares closed at $46.40 on the first day of trading. It's $0.60 down from the $47 of IPO price.

I believe either the IPO price was set too high or the market is much picky than Globalfundries thought.
 

Daniel Nenni

Admin
Staff member

Daniel Nenni

Admin
Staff member
“I think for the better part of the next five to 10 years, we’re going to be chasing supply not demand,” GlobalFoundries CEO Tom Caulfield said in an interview with CNBC. GlobalFoundries’ clients include Qualcomm, MediaTek, NXP Semiconductors and Qorvo.

“I would say, since August of 2020, we can’t make enough. Every day, we try to squeeze out as much as we can. I would say we’re over 100%,” Caulfield said, adding that the company’s wafer capacity was sold out through the end of 2023.


Now that GF is public we can better track these statements, absolutely.
 

prime007

Active member
OK...I'll admit that I was expecting GlobalFoundries' stock price to flounder instead of soar after their IPO. The company now says it has more than $20 billion in "long-term agreements" that cannot be canceled. For a short financial analysis of GlobalFoundries, WSJ just did an article. It's free to read if you click the link below:
 
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