GlobalFoundries: shares in offering offered by Mubadala Tech

GlobalFoundries Inc. (Nasdaq: GFS) completed a $950 million secondary offering of ordinary shares on May 22, 2024, with all shares sold by Mubadala Technology Investment Company, a wholly owned subsidiary of Mubadala Investment Company PJSC, its largest shareholder. The offering priced at $50.75 per share, with the Selling Shareholder granting underwriters a 30-day option to purchase an additional $112.5 million in shares (15% of the initial offering). GlobalFoundries did not sell shares in the offering and will not receive proceeds from the transaction.

Concurrently, the company repurchased $200 million of the Selling Shareholder's shares at the public offering price, funded by cash on its balance sheet. The repurchase was structured to occur simultaneously with the offering's closing on May 28, 2024, though the offering's completion was not contingent on the repurchase. Morgan Stanley, BofA Securities, and other underwriters managed the transaction, with no discounts or commissions applied to the repurchased shares.

The offering underscores Mubadala's role as a strategic investor while allowing GlobalFoundries to adjust its equity structure without diluting existing shareholders. The semiconductor manufacturer, with manufacturing operations across the U.S., Europe, and Asia, emphasized its focus on high-growth markets and supply chain resilience in its disclosures.

As of March 2026, investors may review the transaction's long-term impact on GlobalFoundries' capital structure and market dynamics, though short-term stock price fluctuations followed the announcement. The company's 2023 Annual Report on Form 20-F outlines risks related to market conditions and shareholder activities.

(https://gf.com/gf-press-release/globalfoundries-announces-launch-of-950-million-secondary-offering-of-ordinary-shares-including-concurrent-200-million-share-repurchase/): GlobalFoundries Press Release, May 22, 2024
(https://gf.com/gf-press-release/globalfoundries-announces-pricing-of-950-million-secondary-offering-of-ordinary-shares-including-concurrent-200-million-share-repurchase/): GlobalFoundries Pricing Announcement, May 22, 2024
(https://www.rwbaird.com/transactions/investment-banking/dealcard/6348/): RW Baird Deal Card, undated
(https://www.investing.com/news/stock-market-news/globalfoundries-stock-falls-5-on-secondary-share-offering-93CH-4555726): Investing.com, October 2024 (title only)