Shares of GlobalFoundries (GFS) tumbled 5.45% following the announcement that Mubadala Technology Investment Company, its primary stakeholder, 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 the prevailing market price of $44.09 when the deal was priced. Nevertheless, GFS shares remain elevated by approximately 39% over the preceding six-month period, despite Tuesday’s selloff.
Mubadala Technology Investment Company operates as a fully owned entity under the Abu Dhabi-based Mubadala Investment Company PJSC. As GlobalFoundries’ dominant shareholder, Mubadala stands as the exclusive selling party in this stock transaction.
The semiconductor manufacturer is staying on the sidelines of this offering. GlobalFoundries will not capture any proceeds from the share sale.
The deal structure provides underwriters with a 30-day greenshoe provision allowing them to acquire up to 3 million additional shares at the same offering price, minus underwriting discounts. This option represents a 15% increase over the base offering of 20 million shares.
To mitigate the dilutive effects of the offering, GlobalFoundries committed to acquiring $300 million of its own shares directly from the underwriting syndicate. The company’s repurchase price will match the underwriters’ purchase price in the secondary sale.
The share repurchase program will draw entirely from GlobalFoundries’ existing cash holdings. This buyback operates within a broader $500 million share repurchase program that received board approval during February 2026.
The secondary offering is scheduled to finalize on March 13, 2026. While the buyback’s completion depends on the offering closing, the offering itself proceeds independently of the buyback’s completion.
J.P. Morgan and Morgan Stanley serve as joint book-running managers for the transaction. BofA Securities, Citigroup, and Goldman Sachs round out the syndicate as active book-runners.
The chipmaker delivered fourth quarter 2025 revenues of $1.83 billion, marking an 8% sequential increase from the third quarter. Performance hit the upper boundary of company guidance, propelled by robust demand from automotive and data center customers.
Needham initiated research coverage on GFS shares with a Buy recommendation and established a $55 price objective. Meanwhile, Wedbush elevated its price target from $40 to $50 while maintaining a Neutral stance on the stock.
The latest Wall Street analyst rating assigned to GFS is a Buy recommendation accompanied by a $58 price target.
GlobalFoundries currently carries a market capitalization near $24.51 billion, while daily trading volume averages roughly 4.5 million shares.
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