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Mubadala trims stake in US chipmaker GlobalFoundries

By Divsha Bhat
Mubadala Investment Company CEO Khaldoon Khalifa Al Mubarak. The Abu Dhabi wealth fund is selling some GlobalFoundaries shares two years after the US company went public Reuters/Amr Alfiky
Mubadala Investment Company CEO Khaldoon Khalifa Al Mubarak. The Abu Dhabi wealth fund is selling GlobalFoundaries shares two years after the US company went public
  • Mubadala offers shares worth $950m
  • US company valued at $30bn
  • Revenue, income down in 2024

Abu Dhabi sovereign wealth fund Mubadala Investment Company is offloading some of its holdings in chipmaker GlobalFoundries. 

A Mubadala subsidiary is offering to sell $950 million worth of GlobalFoundries shares, two years after the US semiconductor manufacturer went public on Nasdaq.

Mubadala Technology Investment Company will receive the funds from the secondary public offering, which is priced at $50.75 a share, according to a statement from GlobalFoundries.

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This price range reflects a 4.9 percent to 8 percent discount compared to $55.21 per share closing price of May 22, according to calculations by Bloomberg. 

Mubadala declined to comment when contacted by AGBI.

The news resulted in a slight dip in the GlobalFoundries share price, which fell around 6 percent.

The sale managed by US bank Morgan Stanley and BofA Securities is slated to close on May 28, subject to customary closing conditions. 

GlobalFoundries is not selling any ordinary shares and will not receive any proceeds from the sale. 

However, to potentially stabilise the stock price, the company intends to repurchase $200 million worth of shares. It will fund the share repurchases with cash on its balance sheet. 

Earlier this month, GlobalFoundries reported its first-quarter revenue of $1.55 billion for 2024, down from $1.85 billion during the same period last year. 

Net income also dropped from $278 million to $134 million during the quarter. Currently, the valuation of the company stands at $30 billion. 

Mubadala is GlobalFoundries’ largest shareholder with an 85 percent stake before this sale.

In 2021, both companies raised approximately $3 billion in the company’s IPO, including an over allotment option.

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