Oct 19 (Reuters) – Chipmaker GlobalFoundries, owned by Abu Dhabi’s sovereign wealth fund Mubadala Funding Co, is aiming for a valuation of about $25 billion in its preliminary public providing in the US.
The IPO, one of the hotly anticipated listings this yr, is anticipated to cap a file yr for flotations, after a number of large names corresponding to Robinhood Markets Inc (HOOD.O), Coinbase International Inc (COIN.O) and Roblox Corp (RBLX.N) took benefit of a growth in capital markets earlier this yr.
Alongside electric-vehicle maker Rivian’s inventory market debut, GlobalFoundries is anticipated to headline an unusually crowded year-end IPO schedule.
IPOs in the US have already raised an all-time file of over $250 billion this yr, in line with information from Dealogic.
In a submitting to inventory exchanges on Tuesday, GlobalFoundries set a worth vary between $42 and $47 a share for the IPO. On the higher finish of the vary, the corporate is anticipated to lift about $2.6 billion.
Reuters was first to report in August that GlobalFoundries had filed for an IPO in New York that might worth the corporate at round $25 billion. read more
Together with the “greenshoe possibility”, which permits corporations to promote further shares throughout an IPO, GlobalFoundries may very well be valued at about $26 billion.
Funds related to BlackRock Inc, Constancy Administration & Analysis Firm LLC, some associates of Koch Strategic Platforms LLC, Columbia Administration Funding Advisers LLC and Qualcomm Inc have dedicated to take a position about $1.05 billion within the IPO.
Funds related to Silver Lake Expertise Administration LLC have additionally dedicated to individually make investments $75 million as a part of a so-called concurrent non-public placement.
Mubadala, which is promoting 22 million shares within the IPO, will maintain an 89.4% stake in GlobalFoundries and management 89.4% of the voting energy, following the itemizing and the non-public placement, in line with the newest submitting.
SKYROCKETING CHIP DEMAND
In its newest submitting, GlobalFoundries mentioned it estimated third-quarter income to return in at round $1.7 billion, on the greater finish of expectations, representing a 56% bounce from a yr earlier.
GlobalFoundries’ income had been in decline since 2018, however over the previous 12 months the corporate’s progress rebounded as worldwide demand for chips sky-rocketed.
The chipmaker has been consolidating its product strains and introduced plans to broaden in the US and Singapore with new factories. It plans to construct a second manufacturing unit close to its Malta, New York, headquarters, and spend $1 billion to spice up output.
A scarcity of semiconductor chips globally has pressured the world’s largest chipmakers to ramp up worldwide manufacturing within the aftermath of the COVID-19 pandemic that precipitated manufacturing delays.
GlobalFoundries was created when Mubadala purchased Superior Micro Gadgets Inc’s (AMD.O) manufacturing amenities in 2009, and later merged it with Singapore’s Chartered Semiconductor Manufacturing Ltd.
The corporate, which makes radio-frequency communications chips for 5G, automotive and different specialised semiconductors, counts Superior Micro Gadgets and Broadcom Inc (AVGO.O) amongst its clients.
GlobalFoundries plans to checklist on the Nasdaq below the image “GFS”.
Morgan Stanley, BofA Securities, J.P. Morgan, Citigroup and Credit score Suisse are the lead underwriters for the IPO.
Reporting by Anirban Sen in Bengaluru; further reporting by Niket Nishant; Modifying by Shinjini Ganguli and Saumyadeb Chakrabarty
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