Mubadala-owned chipmaker GlobalFoundries valued at $26b in lacklustre debut

A screen displays the company logo for semiconductor and chipmaker GlobalFoundries Inc. during the company's IPO at the Nasdaq MarketSite in Times Square in New York City, U.S., October 28, 2021. REUTERS/Brendan McDermid

Shares of GlobalFoundries Inc, which is owned by Abu Dhabi’s sovereign wealth fund Mubadala Investment Co, opened flat on Nasdaq on Thursday, giving the chipmaker a market capitalization of about $26 billion.

GlobalFoundries priced its IPO, which is the third largest in the United States so far this year, at $47 a share. Only South Korean e-commerce giant Coupang and ride hailing company Didi Global have had larger stock market floats this year.

GlobalFoundries, which disclosed a 13% revenue growth for the six months ended June 30, has benefited from surging demand for chips, due to a global shortage that has forced automakers and other electronics firms to cut production.

Moreover, the IPO market in the U.S. has never been stronger, numerous other big names such as Coinbase Global Inc, Robinhood Markets Inc and gaming platform Roblox have already gone public this year. Electric-vehicle maker Rivian is also expected to list its shares in the coming weeks.

U.S. IPOs have raised an all-time record of over $250 billion so far this year, according to data from Dealogic.

GlobalFoundries was created when Mubadala bought Advanced Micro Devices Inc’s manufacturing facilities in 2009 and later merged it with Singapore’s Chartered Semiconductor Manufacturing Ltd.

The company, which makes radio-frequency communications chips for 5G, automotive, and other specialized semiconductors, counts AMD and Broadcom Inc among its customers.

GlobalFoundries is the world’s third-largest foundry by revenue behind Taiwan Semiconductor Manufacturing Co Ltd and Samsung Electronics Co Ltd, but ranks second when factoring out Samsung’s foundry business that makes chips for other elements of the South Korean firm.

Mubadala, which has a majority stake in GlobalFoundries, will hold 89.4% of the company’s shares and voting power after the offering.

Funds affiliated with Silver Lake have bought nearly $75 million worth of shares as part of a so-called private placement held alongside the IPO.

Morgan Stanley, BofA Securities, J.P. Morgan, Citigroup and Credit Suisse are the lead underwriters for the IPO.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.