TLDR
- Mubadala is selling 20 million GFS ordinary shares at $42.00 each, a discount to the stock’s recent trading price of $44.09
- GlobalFoundries itself is not selling any stock and will not receive any proceeds from the offering
- The deal includes a 30-day option for underwriters to buy up to 3 million more shares
- GlobalFoundries will simultaneously buy back $300 million of its own stock from underwriters, funded with cash
- The buyback is part of a $500 million repurchase program approved by the board in February 2026
GlobalFoundries (GFS) stock dropped 5.45% after its largest shareholder, Mubadala Technology Investment Company, priced a secondary offering of 20 million ordinary shares at $42.00 per share on March 11, 2026.
The offering price came in at a discount to GFS’s trading price of $44.09 at the time of pricing. Despite Tuesday’s drop, the stock is still up around 39% over the past six months.
Mubadala is a wholly owned subsidiary of Abu Dhabi-based Mubadala Investment Company PJSC. It is GlobalFoundries’ biggest shareholder and is the sole seller in this transaction.
GlobalFoundries is not part of the sale. The company will not receive any money from the offering.
Underwriters were also handed a 30-day option to buy an additional 3 million shares at the offering price, less underwriting fees. That option adds up to 15% on top of the 20 million shares being sold.
$300M Buyback Running Alongside the Offering
In a move that softens the dilution impact, GlobalFoundries agreed to repurchase $300 million worth of its own stock from the underwriters. The buyback price will equal what the underwriters pay in the offering.
The repurchase will be funded entirely from cash on the company’s balance sheet. It falls under a $500 million buyback authorization that GlobalFoundries’ board approved in February 2026.
The offering is expected to close on March 13, 2026. The buyback closing is tied to the offering closing, though the offering itself is not conditional on the buyback completing.
J.P. Morgan and Morgan Stanley are leading the deal as joint book-runners. BofA Securities, Citigroup, and Goldman Sachs are acting as active book-runners.
Recent Financials and Analyst Views
GlobalFoundries reported Q4 2025 revenue of $1.83 billion, up 8% from Q3. The result came in at the top end of guidance, with strength in automotive and data center segments.
Needham recently started coverage of GFS with a Buy rating and a $55 price target. Wedbush raised its target to $50 from $40 but kept a Neutral rating.
The most recent analyst rating on GFS is a Buy with a $58 price target.
GFS has a current market cap of approximately $24.51 billion, with an average daily trading volume of around 4.5 million shares.
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