Key Highlights
- Abu Dhabi’s Mubadala is offloading 20 million GlobalFoundries shares priced at $42.00 per share, below the recent market price of $44.09
- GFS is not participating in the share sale and won’t receive any funds from this transaction
- Underwriters have been granted a 30-day option to acquire an additional 3 million shares
- In a concurrent move, GlobalFoundries plans to repurchase $300 million worth of shares from underwriters using available cash
- This share repurchase is part of a broader $500 million buyback authorization greenlit by the board in February 2026
Shares of GlobalFoundries (GFS) tumbled 5.45% following news that Mubadala Technology Investment Company, the chipmaker’s primary shareholder, completed a secondary offering of 20 million shares at $42.00 apiece on March 11, 2026.
The $42.00 offering price represented a markdown from GFS’s $44.09 market price when the deal was priced. Even with Tuesday’s decline, shares remain approximately 39% higher compared to six months ago.
Mubadala Technology Investment Company operates as a wholly owned arm of Mubadala Investment Company PJSC, based in Abu Dhabi. The entity holds the largest ownership stake in GlobalFoundries and serves as the exclusive seller in this offering.
GlobalFoundries has no involvement in the share sale. The semiconductor manufacturer will not collect any proceeds from this transaction.
The underwriting syndicate received a 30-day greenshoe option allowing them to purchase up to 3 million additional shares at the same offering price, minus underwriting discounts. This represents a 15% expansion option above the base 20 million share offering.
Concurrent $300M Share Repurchase Program
To counterbalance potential dilutive effects, GlobalFoundries has committed to buying back $300 million of its shares from the underwriting group. The company will pay the same price the underwriters are paying in the secondary offering.
The share repurchase will be financed completely through the company’s existing cash reserves. This buyback operates within a $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 buyback closing depends on the offering closing, the secondary sale itself isn’t contingent upon completion of the repurchase.
J.P. Morgan and Morgan Stanley are serving 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 Sentiment
GlobalFoundries disclosed fourth quarter 2025 revenue of $1.83 billion, representing an 8% sequential increase from Q3. The figure landed at the high end of company guidance, driven by robust demand in automotive and data center markets.
Needham recently initiated coverage on GFS shares with a Buy recommendation and established a $55 price objective. Wedbush elevated its price target from $40 to $50 while maintaining a Neutral stance.
The latest analyst assessment on GFS carries a Buy rating with a $58 price objective.
GFS currently commands a market capitalization of roughly $24.51 billion, with typical daily trading volume averaging approximately 4.5 million shares.
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