Overview of the Share Offering#
GlobalFoundries Inc, a semiconductor manufacturer, saw its stock price decline by 5% in after-hours trading on Wednesday. This drop followed the announcement of a secondary public offering of 20 million ordinary shares.
Details of the Offering#
The shares in this offering are being sold by Mubadala Technology Investment Company, which is a subsidiary of Mubadala Investment Company PJSC, the largest shareholder of GlobalFoundries. The selling shareholder is expected to give underwriters a 30-day option to buy an additional 3 million shares at the public offering price, minus any fees for underwriting.
Company’s Role and Share Repurchase#
Importantly, GlobalFoundries will not be selling any shares in this offering and will not gain any proceeds from it. Instead, the company plans to buy back approximately $300 million worth of shares from the underwriters at the same price they pay in the offering. This repurchase is part of a larger $500 million share buyback program approved by the company’s Board of Directors in February 2026, and will be funded using cash from its balance sheet.
Timeline and Underwriters#
GlobalFoundries anticipates that the share repurchase will close around the same time as the offering. However, the completion of the repurchase depends on the successful closing of the offering. Notably, the underwriters, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC, will not receive any fees for the shares that GlobalFoundries is repurchasing.