Skip to content Skip to Search
Skip navigation

Mubadala trims stake in US chipmaker GlobalFoundries

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.

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.

Latest articles

Opec Secretary General Haitham Al Ghais says peak oil 'is not on the horizon'

Upstream oil and gas ‘needs more annual investment’

Annual capital expenditure for exploration and production in the upstream sector of the oil industry needs to increase by 22 percent by 2030 because of growing demand and cost inflation, experts say. A cumulative $4.3 trillion needs to be invested between 2025 and 2030, according to a report by the International Energy Forum (IEF) and […]

Turkey foreign property sales

Foreigners turning back on Turkish real estate

Foreign buyers are increasingly shunning the Turkish property market, wary of high prices, the expensive cost of living and a less welcoming environment for overseas real estate investors. There were only 2,064 residential units sold to foreign buyers in May, 35 percent down on the same month last year, data issued by the state statistics […]

2KEY8G1 Emirates Airline Airbus A380 aircraft landing. Aerial view of Emirates Airlines A380-800 airplane. An Emirates plane coming in to land at LAX; a spokesperson for Emirates said the contraventions were for safety reasons

US fines Emirates for operating in prohibited airspace

Emirates has been fined $1.5 million by the US Transportation Department for operating flights carrying JetBlue Airways’ JBLU.O designator code in prohibited airspace. The transportation department said that between December 2021 and August 2022, Emirates operated a significant number of flights carrying the JetBlue Airways code between the United Arab Emirates and the United States […]

Egypt will use the US funding across a range of sectors including agriculture

US allocates $130m development funding to Egypt

The US has allocated funding of $130 million for a range of developmental projects in Egypt, it was announced on Thursday. In a press release published by the US Embassy in Cairo, ambassador Herro Mustafa Garg said that the money would go towards “advancing Egyptian efforts to achieve a brighter, healthier, and more prosperous future […]