Mubadala-backed GlobalFoundries targets valuation of nearly $25 billion in U.S. IPO

(Reuters) -Chipmaker GlobalFoundries, owned by Abu Dhabi’s sovereign wealth fund Mubadala Investment Co, is aiming for a valuation of around $25 billion in its initial public offering in the United States.

In a filing to stock exchanges on Tuesday, GlobalFoundries set a price range between $42 and $47 a share for its stock market flotation. At the upper end of the range, the company is aiming to raise about $2.6 billion.

Reuters was first to report in August that GlobalFoundries had filed for an IPO in New York that could value the company at around $25 billion.

The IPO, one of the most hotly anticipated stock market debuts, is expected to round out a record year for floatations, after several other big names such as Robinhood Markets Inc, Coinbase Global Inc and Roblox Corp capitalized on the capital markets boom earlier in 2021.

Alongside electric-vehicle maker Rivian’s stock market debut, GlobalFoundries is expected to headline an unusually crowded year-end IPO schedule.

In its latest filing, GlobalFoundries also reported a 56% surge in third-quarter revenue, fueled by worldwide demand for chips.

A shortage of semiconductor chips globally has forced the world’s biggest chipmakers to ramp up worldwide production in the aftermath of the COVID-19 pandemic that caused manufacturing delays.

In September, Intel Chief Executive Officer Pat Gelsinger said the U.S. company planned to invest up to $95 billion in Europe over the next decade.

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