Mubadala Tech to sell GlobalFoundries stake in secondary offering: Abu Dhabi sovereign wealth fund Mubadala subsidiary Mubadala Technology Investment Company is looking to sell a portion of its stake in semiconductor manufacturer GlobalFoundries on Nasdaq, seeking to raise USD 950 mn, a press release reads. GlobalFoundries has an estimated value of around USD 30.5 bn with its shares down 8.9% for the year, according to Bloomberg. The offering will conclude on Tuesday, 28 May.

The offering price: Shares will be offered at USD 50.75-52.50 apiece, according to the terms of the transaction seen by Bloomberg.

More details: GlobalFoundries will buy back USD 200 mn worth of shares at the offering price using cash from its balance sheet. The underwriters will also have the option to purchase an additional USD 112.5 mn worth of GlobalFoundries’ ordinary shares at the public offering price, minus commissions and fees, within 30 days, according to the statement.

Mubadala is GlobalFoundries’ majority shareholder with an 85% stake prior to the share sale, Bloomberg notes. GlobalFoundries and Mubadala raised around USD 2.9 bn in the chipmaker’s IPO back in 2021.

Market reax: Shares in GlobalFoundries were down 8.5% yesterday to AED 50.49.

Advisors: Morgan Stanley, BofA Securities, Citigroup, Goldman Sachs, J.P. Morgan, Deutsche Bank Securities, Evercore ISI, and HSBC Securities (USA) are the book-running managers for the offering. Baird, Needham & Company, Raymond James, Wedbush Securities, Drexel Hamilton, and Siebert Williams Shank are co-managers.

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Mubadala to raise up to USD 750 mn in Formosa bond sale: Mubadala is set to raise between USD 500-750 mn from the sale of 10-year USD-denominated Formosa bonds, Reuters reports, citing fixed-income news service IFR. Orders for the issuance attracted over USD 3.3 bn in orders, prompting the wealth fund to narrow the price guidance to 80-85 basis points (bps) over US Treasuries, down from an earlier spread of around 110 bps.

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