A subsidiary of Mubadala Investment Co. completed the sale of $840 million worth of GlobalFoundries Inc. stock in an offering that market sources said was about four times oversubscribed. The placement, announced overnight, attracted what the reporting described as anchor-style demand predominantly from long-only investors.
The secondary public offering consisted of 20 million ordinary shares priced at $42.00 per share. In connection with the offering, GlobalFoundries said it will repurchase $300 million of shares.
Mubadala Technology Investment Company - a wholly owned subsidiary of Mubadala Investment Company PJSC and tied to GlobalFoundries’ largest shareholder - sold the entirety of the shares included in the transaction.
Allocation of the offering was heavily concentrated among a small number of participants. The 10 largest investors in the deal took nearly 70% of the shares, while the top 25 investors accounted for about 90% of the placement.
Several global and regional banks participated in executing the offering. Among the institutions working on the transaction were JPMorgan Chase & Co., Morgan Stanley, Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., BNP Paribas SA, Evercore Inc. and UBS Group AG.
The company and selling shareholder provided the pricing and allocation details as part of the offering announcement. The combination of a large secondary sale by the Mubadala unit, concentrated allocations to a relatively small investor group, and the announced $300 million buyback are the principal elements disclosed in the filing and related notices.
Context and market focus
The transaction centers on GlobalFoundries, a semiconductor manufacturer, and highlights activity at the intersection of the chip sector and capital markets. The information released around the pricing, investor mix and buyback outlines how the deal was structured and distributed among institutional participants.
What was disclosed
- 20 million ordinary shares were sold at $42.00 per share, totaling $840 million.
- The offering was reportedly oversubscribed by roughly four times.
- A $300 million share repurchase was announced in conjunction with the offering.
- Mubadala Technology Investment Company sold all shares in the offering.
- Allocation concentration was high - nearly 70% to the 10 largest investors and about 90% to the top 25 investors.
- Major banks including JPMorgan Chase, Morgan Stanley, Bank of America, Citigroup, Goldman Sachs, BNP Paribas, Evercore and UBS assisted on the deal.