GlobalFoundries valued at $25bn in IPO pricing

Foundry Globalfoundries has priced its IPO at between $42 and $47 per share and said it plans to offer up 63.25 million shares representing about 10.6 percent of the company.

GF has applied to list its ordinary shares on the Global Select Market under the ticker symbol GFS. Mubadala Investment, the sovereign wealth fund of Abu Dhabi and owner of Globalfoundries (New York), will retain 89.4 percent of the company after this sale of shares.

At $42 per share the sale would raise about $2.66 billion and value the company at $22.4 billion. At $47 per share the sale would raise about $2.97 billion and value the company at $25 billion. The share offer includes 8.25 million ordinary shares that the underwriters have an option to purchase.

Globalfoundries would benefit from the sale of 33 million of the shares – and Mubadala from 22 million. So Globalfoundries could raise between about $1.4 billion and $1.55 billion from the share issue.

Five investors, known as cornerstone investors, have indicated an interest in buying shares with a purchase price value of $1.05 billion. These investors are: BlackRock, Columbia Management Investment Advisers, Fidelity Management & Research, Koch Industries. and Qualcomm.