GlobalFoundries Confidentially Files for Initial Public Offering

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Public IPO arrives in October

GlobalFoundries
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GlobalFoundries, one of the leading semiconductor manufacturing businesses, has been planning to do an initial public offering (IPO) for some time now. According to the latest report via Reuters , GlobalFoundries has filled an IPO in confidentiality that may value GlobalFoundries at around $25 billion.

Last month, we reported on the rumors of Intel buying the chipmaker and incorporating it into its business. At the same time, GlobalFoundries has been planning to file an IPO for a longer period, and it appears like the alleged Intel offer is not going to be accepted as GlobalFoundries wants to remain in the hands of the existing owners.

GlobalFoundries was founded by the manufacturing division of AMD and later sold to Mubadala Investment Company from Abu Dhabi. The investment company is strongly connected to Mohamed bin Zayed, crown prince of Abu Dhabi, meaning that the global line-up of semiconductor foundries is settled in Emirates.

Today's report notes that GlobalFoundries has confidentially filed for IPO and that the Emirate-owned silicon powerhouse is working with Morgan Stanley, Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc., and Credit Suisse Group AG to prepare all of the needed paperwork and documentation to go public.

In the offer that Intel allegedly made to purchase GlobalFoundries, the valuation of the purchase was reported to equal $30 billion US. However, it seems like GlobalFoundries's pre-public trading valuation is standing at $25 billion US, a figure close to the original offer. What that means is that the IPO will give GlobalFoundries's management reassurance in the company's value and provide it with new options that come with public trading. 

It is uncertain at which exact date is GF supposed to go public, however, the company is expected to reveal its IPO in October, while public trading is expected to start by the end of this year. Ultimately, it all depends on the ability of the U.S. Securities and Exchange Commission (SEC) to process the paperwork submitted by GF, and the assumption that no problems with documentation appear.

Aleksandar Kostovic
6 Comments Comment from the forums
  • peachpuff
    Investor: what products will you be releasing in the future?
    GloFo: 12nm, 12nm and umm 12nm
    Reply
  • -Fran-
    peachpuff said:
    Investor: what products will you be releasing in the future?
    GloFo: 12nm, 12nm and umm 12nm
    You say that jokingly, but you'd be surprised just how many industries still use 45nm+ process nodes for all their chips. If GloFo can make the 12nm really cheap and sell it like hotcakes, then they'll have a lot of money in their hands.

    As I suspected, the news about Intel trying to buy them out was to increase their IPO. There's also a bit of a political stuff behind the scenes, like it or not, but for the most part, I think this should go well for them. Not that they can actually improve the ASML situation.

    Regards.
    Reply
  • Tom Sunday
    I worked for Mubadala in Abu Dhabi in their real estate investment business. Yes the Crown Prince also being the President of the UAE owns Mubadala. To be sure Mubadala is a pure investment company. They do not themselves want to operate any businesses but usually stay at arms length. I believe that Mubadala will keep GlobalFoundries in one way or another and particularly in how hot the market is for products such as these. But going for a IPO that will be interesting to say the least.
    Reply
  • Krotow
    So in Ramadan there will be no chips :D
    Reply
  • Tom Sunday
    Good observation! I loved Ramadan. It added about 30-days of downtime to our company. Most senior execs only worked half-days if at all. So essentially Ramadan added another 14-days off for me besides my regular 30-days vacation. Your question: I don't think that the chips will be manufactured in the UAE.
    Reply
  • Krotow
    Tom Sunday said:
    Good observation! I loved Ramadan. It added about 30-days of downtime to our company. Most senior execs only worked half-days if at all. So essentially Ramadan added another 14-days off for me besides my regular 30-days vacation. Your question: I don't think that the chips will be manufactured in the UAE.

    For God's sake - no. Even if UAE have plenty of sand around, their work ethics make me doubt about what and when they till make.
    Reply