Chipmaker GlobalFoundries plans $25 billion IPO in US

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Chipmaker GlobalFoundries plans $25 billion IPO in US

Oct 19 Reuters : Chipmaker GlobalFoundries, owned by Abu Dhabi's sovereign wealth fund Mubadala Investment Co., is aiming for a valuation of around 25 billion in its initial public offering in the United States.

In a filing to stock exchanges in an initial meeting on Tuesday, GlobalFoundries set a price range between $42 and $47 a share for its bond market flotation. At the upper end of the range, the company is targeting to raise about $2.6 billion.

Reuters was the first to report that GlobalFoundries had filed for an IPO in New York in August which could have value it at around $25 billion.

The IPO, one of the most anticipated stock market debuts, is expected to complete a record year for floatations, after several other big names including Robinhood Markets Inc. Coinbase Global Inc and Roblox Corp capitalized on the capital markets boom in 2021.

Alongside electric vehicle maker Rivian's stock market debut, GlobalFoundries is expected to headline an unusually crowded year-end IPO schedule.

In its latest filing, GlobalFoundries also reported a 56% spike in third-quarter revenues fueled by global demand for chips.

A shortage of semiconductor chips globally caused the world's largest chipmakers to ramp up global production in the aftermath of COVID - 19 pandemic which forced manufacturing delays.

In September, Intel Chief Executive Officer Pat Gelsinger said the U.S. company planned to invest more than $95 billion in Europe over the next decade.