Editor’s note: This article was updated on Oct. 26 to correct the GlobalFoundries IPO price range.
This week, the initial public offering (IPO) boom continues. Specifically, the upcoming GlobalFoundries IPO is driving a lot of attention in the markets. And for good reason.
GlobalFoundries is a company that was initially spun off from Advanced Micro Devices (NASDAQ:AMD) in 2009. The former manufacturing operations behind AMD, GlobalFoundries is a large-scale maker of integrated circuits. These circuits drive computing power used in everything from mobile devices to automobiles and the burgeoning Internet of Things (IOT). Accordingly, GlobalFoundries is a company that’s generated a tremendous amount of intrigue recently.
This upcoming IPO could potentially see GlobalFoundries achieve a $25 billion valuation. For any IPO, that’s a big number. However, there’s a reason why investors are showing high demand for what will be GFS stock.
Let’s dive into a few things investors may want to know about this upcoming IPO.
What to Know About the GlobalFoundries IPO
GlobalFoundries is expected to officially launch under the ticker GFS on the Nasdaq this Thursday, Oct. 28. The offering is expected to be priced tomorrow, one day prior to the launch.
That said, according to the company’s initial filings, GlobalFoundries is expecting to raise between approximately $2.3 billion and $2.6 billion in aggregate proceeds. The company expects to sell 55 million shares between $42 and $47. However, that number could change between now and tomorrow.
This offering is being led by a consortium of 16 investment banks and is one of the biggest IPO deals of the year. Given the interest in new offerings of late, that says something.
Indeed, investors will likely be watching how this IPO performs on opening day. GlobalFoundries has been losing money of late. Additionally, revenues have been declining on a year-over-year basis. However, there’s a tremendous amount of upside with this stock given the global chip shortage and increased global demand for circuitry.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
