Semiconductor chipmaker GlobalFoundries traded down after pricing shares at the top of its range ahead of its market debut today. 💪
GlobalFoundries, which is affectionately known in semiconductor circles as GloFo, raised $2.6 billion from today’s IPO. That pricing valued the company at $25 billion, which came in as the third-biggest IPO on U.S. exchanges in 2021. 😁
GlobalFoundries and its majority stakeholder, Mubadala, sold 55 million shares at $47.00, according to Bloomberg. The chipmaker sold 33 million shares. Thanks to GloFo’s phenomenal market debut, its market value now exceeds $25 billion.
GlobalFoundries intends to manufacture less-advanced chips than its Taiwanese competitors, but GloFo’s chips are nonetheless in high demand among car manufacturers and other industries.
Earlier this year, the company was frequently mentioned in M&A conversations with other chipmakers as they looked to expand their businesses. In July, GloFo reportedly entered talks with Intel, which was offering $30 billion according to sources. GloFo executives denied the reports (and obviously went the IPO route instead, which worked out well.)
$GFS closed the day -1.77%.