Chipmaker GlobalFoundries falls after majority owner Mubadala's $1.1 bln stake sale

GLOBALFOUNDRIES

12/03/2026 11:04

** Chipmaker GlobalFoundries GFS.O shares down 3.1% before the bell at $42.71 after secondary offering by its majority owner priced

** GFS late Weds announced 20 mln shares sold by subsidiary of Abu Dhabi sovereign wealth fund Mubadala Investment Company at $42 for deal size of $840 mln

** Offering price represents 4.7% discount to stock's last sale on Weds

** Also, GFS to concurrently repurchase $300 mln of shares from the selling shareholder

** With the transactions, Mubadala's stake goes from ~81% to ~77%, or ~423.4 mln shares (assuming repurchase amount of ~6.96 mln shares), per the prospectus

** Prior to offering, GFS had ~556.4 mln shares outstanding for ~$24.5 bln market cap

** JP Morgan and Morgan Stanley lead bookrunners for offering

** GFS, one of the few large foundries with significant capacity outside China and Taiwan, runs chip plants in Germany, Singapore, New York and Vermont

** Its stock fell >5% on Weds, cutting YTD gain to 26%

** Avg rating of 21 analysts is "buy"; median PT $50, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))