GlobalFoundries stock price falls 5% due to secondary stock issuance

LootboxPhobia · 2026-03-11T23:47:19+00:00

GlobalFoundries announces a secondary public offering of 20 million common shares, with the stock price falling by 5%. The offering is being made by the wholly owned subsidiary of the largest shareholder, and GlobalFoundries will repurchase approximately $300 million worth of common shares. The repurchase will be completed on the same day as the offering, using existing cash.

LootboxPhobia

2026-03-11 23:47:19

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Investing.com – GlobalFoundries Inc (NASDAQ:GFS) stock fell 5% in after-hours trading on Wednesday after the company announced a secondary public offering of 20 million common shares.

The semiconductor manufacturer stated that all shares in this offering are being sold by Mubadala Technology Investment Company, a wholly owned subsidiary of its largest shareholder, Mubadala Investment Company PJSC. The selling shareholder is expected to grant the underwriters a 30-day option to purchase up to an additional 3 million common shares at the public offering price minus the underwriting discount and commissions.

GlobalFoundries will not sell any shares in this offering and will not receive any proceeds from the sale. However, the company plans to repurchase approximately $300 million worth of common shares from the underwriters at the same price paid by the underwriters in the offering.

This share repurchase will be executed as part of the $500 million share repurchase authorization approved by GlobalFoundries’ board of directors in February 2026. The company intends to fund the repurchase with cash on its balance sheet.

GlobalFoundries expects the completion of the share repurchase to occur roughly simultaneously with the completion of the offering. The share repurchase is contingent upon the completion of the offering, but the offering is not contingent upon the share repurchase. The underwriters will not charge any discount or commission on the shares repurchased by GlobalFoundries.

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are serving as the lead underwriters for this offering.

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