2021-06-13

4You Dialy

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GlobalFoundries will publish public offering – it should bring the company $ 30 billion

2 min read

Globalfoundries in April said that he was going to enter the public stock market in the first half of the next year, as well as double the amount of capital costs from the current $ 1.4 billion. Money will be required to expand production capacity, and during the IPO the organizers expect to issue $ 30 billion. Financial consultants are already hired, as sources report.

Image Source: Bloomberg

If we consider that the GlobalFoundries has become a private company in 2009 by selling AMD Arab Investment Investment Assets, then the exit to the IPO will be for this manufacturer of components by returning to the public capital market, while it is American. According to Bloomberg, the GlobalFoundries financial consultant hired Morgan Stanley, and the predicted amount of accommodation reaches $ 30 billion, although its deadlines are not yet specified. Representatives of the company have previously stated that the IPO should take place in the first half of next year, but may be postponed on an earlier term.

The market situation is now favorable for GlobalFoundries – there is a shortage of components produced on a contract basis on mature lithographic technologies. Additional funds are required to expand production, and they can just be obtained during public offering of shares. Going to the stock market, GlobalFoundries will have to report on its financial indicators that still hid from the general public. Judging by the decision of the investors to abandon the development of 7-nm technology, which even was announced in advance, financing the business at a certain stage faced difficulties. What will change the IPO in this plan will become understandable next year if it takes place.

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