Key Points
- Mubadala Technology Investment Company is offloading 20 million ordinary shares of GFS at $42.00 apiece, below the recent trading level of $44.09
- GlobalFoundries is not participating in the sale and won’t receive any funds from this transaction
- Underwriters received a greenshoe option to purchase an additional 3 million shares within 30 days
- GlobalFoundries plans to repurchase $300 million worth of its shares from the underwriters using available cash
- This share repurchase falls within a $500 million authorization greenlit by the board in February 2026
Shares of GlobalFoundries (GFS) fell 5.45% following the announcement that Mubadala Technology Investment Company, its principal shareholder, completed a secondary offering of 20 million shares priced at $42.00 each on March 11, 2026.
The $42 per share price tag represented a markdown from the stock’s $44.09 trading level when the offering was priced. Nonetheless, GFS shares have climbed approximately 39% during the previous six-month period despite Tuesday’s selloff.
Mubadala Technology Investment Company operates as a wholly owned arm of Abu Dhabi’s Mubadala Investment Company PJSC. As GlobalFoundries’ largest institutional investor, Mubadala stands as the only selling party in this deal.
GlobalFoundries maintains no involvement in the transaction. The chipmaker won’t collect any proceeds from this share sale.
The agreement grants underwriters a 30-day window to acquire up to 3 million additional shares at the same offering price, after deducting underwriting discounts. This greenshoe provision represents a 15% increase over the base 20 million share offering.
Company Initiates $300M Stock Repurchase Concurrent with Offering
To offset potential dilutive effects, GlobalFoundries has committed to buying back $300 million of its shares directly from the underwriters. The company will pay the same price that underwriters are paying in the secondary offering.
The semiconductor manufacturer will finance this repurchase entirely through existing cash reserves. This buyback operates within a broader $500 million share repurchase program that received board approval in February 2026.
The secondary offering is scheduled to finalize on March 13, 2026. While the share repurchase is contingent upon the offering’s completion, the offering itself can proceed independently of the buyback.
J.P. Morgan and Morgan Stanley serve as joint book-running managers for the transaction. BofA Securities, Citigroup, and Goldman Sachs have been appointed as active book-runners.
Financial Performance and Wall Street Outlook
GlobalFoundries delivered fourth quarter 2025 revenue of $1.83 billion, representing an 8% sequential increase from Q3. The figure hit the upper bound of management’s guidance range, powered by robust demand in automotive and data center applications.
Needham initiated research coverage on GFS with a Buy recommendation and established a $55 price objective. Wedbush upgraded its price target from $40 to $50 while maintaining a Neutral stance.
The latest analyst assessment on GFS carries a Buy recommendation with a $58 price target.
GFS currently trades at a market capitalization of roughly $24.51 billion, with typical daily volume hovering around 4.5 million shares.
