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Chipmaker GlobalFoundries Falls in Stock Market Debut

Chipmaker GlobalFoundries made its trading debut Thursday at $44.51 a share, 5% down from its initial public offering price of $47.

Chipmaker GlobalFoundries GFS made its stock market debut Thursday on the Nasdaq Global Market at $44.50 a share, 5% lower than its initial public offering price of $47.

Shares of the Malta, N.Y., company at last check fell 4.2% to $45.04. GlobalFoundries trades under the ticker symbol GFS.

Its IPO of 55 million shares was priced at $47 on Wednesday, the top end of its forecast range. The deal raised nearly $2.6 billion.

The underwriters have an option on 8.25 million more shares.

GlobalFoundries, which counts Advanced Micro Devices  (AMD) - Get Advanced Micro Devices, Inc. Report and Broadcom  (AVGO) - Get Broadcom Inc. Report as customers, has gone public in the midst of the global chip shortage.

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The United Arab Emirates sovereign-wealth fund Mubadala bought Advanced Micro manufacturing facilities in 2009 and later merged the operations with Singapore's Chartered Semiconductor Manufacturing to form GlobalFoundries.

The company makes radio-frequency communications chips for 5G, automotive, and other applications.

GlobalFoundries is the world's third-largest foundry by revenue behind Taiwan Semiconductor Manufacturing  (TSM) - Get Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR Report and Samsung Electronics. It ranks second when factoring out Samsung's foundry business, which makes chips for other elements of the South Korean firm, Reuters reported.

For the first half of 2021, the company narrowed its net loss to 60 cents a share from $1.06 a share in the year-earlier period. Revenue climbed 11% to $3.04 billion from $2.7 billion a year earlier.

Morgan Stanley, Bank of America Securities, JPMorgan, Citigroup and Credit Suisse are the lead underwriters for the IPO.

The offering is expected to close on Nov. 1 subject to customary closing conditions.