The number of ordinary shares to be offered, the proportion of the whole holding and the price range for the proposed offering have not yet been determined. GF has applied to list its ordinary shares on the Nasdaq Global Select Market under the ticker symbol GFS.
Globalfoundries is wholly-owned by Mubadala Investment Co., the Abu Dhabi sovereign wealth fund. The plan of record was for an IPO to take place in 2022 but there were reports that the global shortage in semiconductor manufacturing, with the prospect of rising prices, might cause Mubadala to pull the IPO forward to 2021 (see Globalfoundries' IPO could value firm at $20 billion).
Globalfoundries filing with the Securities and Exchange Commission revealed it has lost more than $5 billion over the preceeding three years but that is coming close to breakeven in 2021.
Meanwhile there had also been reports that Intel was in talks about buying Globalfoundries to help it gain momentum in foundry services, a key part of the restructuring being undertaken there by CEO Pat Gelsinger (see Intel in discussions about buying Globalfoundries).
The SEC filing appears to indicate that Mubadala feels it can achieve better value from an IPO than from a trade sale of the company.
It also reveals that Globalfoundries has been making significant losses on declining sales since 2018 but with signs of improvement in 1H21.
In 2018 Globalfoundries made a loss from operations of $2.51 billion on net revenues of $6.20 billion. In 2019 the loss was $1.625 billion on net revenues of $5.81 billion. In 2020 Globalfoundries' loss from operations was $1.66 billion on net revenues of $4.85 billion. However, for the first six months of 2021 net revenues were up on the same period in 2020 and the loss from operations reduced to $198 million.
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