GlobalFoundries Announces Launch of Public Secondary Offering and Concurrent Share Repurchase

Rhea-AI Summary

GlobalFoundries (Nasdaq: GFS) announced a public secondary offering of 20,000,000 ordinary shares by Mubadala’s selling subsidiary and a concurrent company-funded $300 million repurchase of the Selling Shareholder’s shares.

GF will not sell shares or receive offering proceeds; the repurchase is part of a $500 million board authorization and is expected to close substantially simultaneously with the offering. J.P. Morgan and Morgan Stanley are lead book-runners.

Positive

• $300M repurchase funded from cash on balance sheet
• Repurchase executed under approved $500M board authorization
• Underwritten offering led by J.P. Morgan and Morgan Stanley

Negative

• $300M cash outflow may reduce near-term liquidity
• Sale of 20M shares may increase free float and price pressure

News Market Reaction – GFS

-5.67% 2.1x vol

22 alerts

-5.67% News Effect

-7.0% Trough in 23 hr 21 min

-$1.47B Valuation Impact

$24.53B Market Cap

2.1x Rel. Volume

On the day this news was published, GFS declined 5.67%, reflecting a notable negative market reaction. Argus tracked a trough of -7.0% from its starting point during tracking. Our momentum scanner triggered 22 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $1.47B from the company's valuation, bringing the market cap to $24.53B at that time. Trading volume was elevated at 2.1x the daily average, suggesting increased selling activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Secondary shares offered: 20,000,000 shares Underwriter option shares: 3,000,000 shares Concurrent share repurchase: Approximately $300 million +5 more

8 metrics

Secondary shares offered 20,000,000 shares Ordinary shares offered by Mubadala Technology Investment Company

Underwriter option shares 3,000,000 shares 30-day option, equal to 15% of initial public shares

Concurrent share repurchase Approximately $300 million Issuer repurchase from underwriters, funded with cash on balance sheet

Repurchase authorization $500 million Total Board-approved share repurchase authorization from February 2026

Underwriter option term 30 days Period for underwriters to purchase up to 3,000,000 additional shares

Option size vs. base 15% Additional shares equal to 15% of initial public shares offered

Pre-news share price $44.14 Price before announcement, 13.42% below 52-week high

Shares outstanding 555,888,455 shares Ordinary shares outstanding as of Dec 31, 2025 (Form 20-F)

Market Reality Check

Price: $41.59 Vol: Volume 3,635,038 is at 0....

normal vol

$41.59 Last Close

Volume Volume 3,635,038 is at 0.95x the 20-day average of 3,816,471. normal

Technical Price $44.14 is trading above 200-day MA at $37.87, about mid-range of 52-week band.

Peers on Argus

GFS was down 1.58% pre-news with mixed peers: UMC -0.31%, ON -0.7%, STM +0.4%, A...

GFS was down 1.58% pre-news with mixed peers: UMC -0.31%, ON -0.7%, STM +0.4%, ASX +0.37%, SWKS -0.51%, suggesting stock-specific dynamics around the secondary and buyback.

Previous Buybacks,offering Reports

2 past events · Latest: May 22 (Negative)

Same Type Pattern 2 events

Date	Event	Sentiment	Move	Catalyst
May 22	Secondary & buyback pricing	Negative	-8.6%	Priced $950M secondary and $200M buyback, Mubadala selling large block.
May 22	Secondary & buyback launch	Negative	-8.6%	Announced launch of $950M secondary with $200M repurchase funded by cash.

Pattern Detected

Similar secondary-plus-buyback announcements previously saw an average -8.55% next-day move, suggesting this structure has historically coincided with negative reactions.

Recent Company History

Over the past two years, GFS has twice announced secondary offerings by its largest shareholder combined with concurrent share repurchases, both tagged as buybacks,offering. Those May 2024 transactions totaled $950M in secondary sales with a $200M buyback and produced a -8.55% 24-hour price move. Today’s announcement follows the same pattern: a Mubadala-led secondary while GFS deploys its authorized repurchase capacity, funded from cash on the balance sheet.

Historical Comparison

-8.6% avg move · Past GFS secondary-plus-buyback announcements under the buybacks,offering tag saw an average next-da...

buybacks,offering

-8.6%

Average Historical Move buybacks,offering

Past GFS secondary-plus-buyback announcements under the buybacks,offering tag saw an average next-day move of about -8.55%, framing today’s structure against a history of pressure.

The company has repeatedly paired large shareholder secondary sales with issuer-funded repurchases, using cash reserves to offset supply from Mubadala-led offerings.

Market Pulse Summary

The stock moved -5.7% in the session following this news. A negative reaction despite the concurrent...

Analysis

The stock moved -5.7% in the session following this news. A negative reaction despite the concurrent repurchase fits prior buybacks,offering patterns, which averaged -8.55% moves after announcements. Investors previously focused on increased tradable supply from large Mubadala-led blocks, even as GFS used cash to buy back shares. With the current plan for about $300 million in repurchases under a $500 million authorization, pressure could have reflected concerns about overhang from secondary sales.

Key Terms

secondary public offering, share repurchase, underwriters, prospectus, +4 more

8 terms

secondary public offering financial

"announced the launch of a secondary public offering of 20,000,000 ordinary shares"

A secondary public offering is when a company sells additional shares to the public after its initial sale, often to raise more money or allow early investors to cash out. For investors, it can impact the stock's price by increasing the number of shares available, potentially making the stock more or less valuable depending on demand.

share repurchase financial

"approximately $300 million of ordinary shares to be repurchased by GF"

A share repurchase is when a company uses cash to buy its own shares from the market, reducing the number of shares available to outside investors. Like a homeowner buying back rooms in a shared house to increase their own stake, repurchases can raise earnings per share and often signal management thinks the stock is undervalued, but they also use up cash that could have gone to dividends, investments, or debt reduction — all important considerations for investors.

underwriters financial

"grant the underwriters a 30-day option to purchase up to an additional 3,000,000"

Underwriters are financial professionals or institutions that help companies raise money by selling new securities, such as stocks or bonds, to investors. They assess the risk and determine the price at which these securities should be sold, acting like a bridge between the company and the investors. Their role helps ensure that the company raises the needed funds while providing investors with options that reflect the level of risk involved.

prospectus regulatory

"The offering of these securities is being made only by means of a prospectus."

A prospectus is a detailed document that explains a company's plans for offering new shares or investments to the public. It’s important because it provides potential investors with key information about the company’s business, risks, and how they might make money, helping them decide whether to invest. Think of it as a guidebook for understanding what you're buying into.

registration statement regulatory

"A registration statement relating to these securities has been filed with the Securities"

A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.

preliminary prospectus supplement regulatory

"A preliminary prospectus supplement and accompanying prospectus relating to the offering"

A preliminary prospectus supplement is an initial document that provides important details about a new stock or bond offering before it is finalized. It helps investors understand what is being sold and why, so they can decide whether to invest. Think of it as a preview before the full sales brochure is ready.

Securities and Exchange Commission regulatory

"has been filed with the Securities and Exchange Commission (the “SEC”) and has become effective."

A national government agency that enforces rules for buying, selling and disclosing information about stocks and other investments, acting like a referee and scorekeeper for financial markets. It requires companies to share clear, regular financial and business information and investigates fraud or rule-breaking, which matters to investors because those rules and disclosures help ensure fair prices, reduce hidden risks and make it easier to compare investment choices.

public offering price financial

"at the public offering price minus underwriting discounts and commissions."

The public offering price is the amount of money a company charges investors to buy its shares during a new stock sale to the public. It determines how much the company raises and how much each share is worth at the start of trading. For investors, it helps gauge the initial value of the stock and whether it might be a good investment opportunity.

AI-generated analysis. Not financial advice.

MALTA, N.Y., March 11, 2026 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) (GF) today announced the launch of a secondary public offering of 20,000,000 ordinary shares to the public and approximately $300 million of ordinary shares to be repurchased by GF, as described below. All of the shares in the offering are being offered by Mubadala Technology Investment Company (the “Selling Shareholder”). The Selling Shareholder is a wholly owned subsidiary of Mubadala Investment Company PJSC (which, together with its affiliates, is GF's largest shareholder). The Selling Shareholder is expected to grant the underwriters a 30-day option to purchase up to an additional 3,000,000 of GF's ordinary shares (equal to 15% of the initial ordinary shares being sold to the public) at the public offering price minus underwriting discounts and commissions.

GF is not selling any ordinary shares in the offering and will not receive any proceeds from the sale of the shares being offered by the Selling Shareholder.

GF intends to concurrently repurchase from the underwriters approximately $300 million of the Selling Shareholder’s ordinary shares at a price per share equal to the price paid by the underwriters in the offering (the “Share Repurchase”). The Share Repurchase will be executed as part of the $500 million share repurchase authorization approved by the Board of Directors of GF in February 2026. GF intends to fund the Share Repurchase with cash on its balance sheet. GF expects the closing of the Share Repurchase to occur substantially simultaneously with the closing of the offering. The closing of the Share Repurchase is conditioned on the closing of the offering. The closing of the offering is not conditioned on the closing of the Share Repurchase. The Share Repurchase is not contingent on any exercise of the underwriters' option to purchase additional shares in the offering, and any such exercise will not have any impact on the amount or price of the Share Repurchase. The underwriters are not receiving any discount or commission with respect to the ordinary shares being repurchased by GF pursuant to the Share Repurchase.

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are acting as lead book-running managers for the offering.

The offering of these securities is being made only by means of a prospectus. A registration statement relating to these securities has been filed with the Securities and Exchange Commission (the “SEC”) and has become effective. A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC. A copy of the preliminary prospectus relating to the offering, when available, may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or by email at prospectus@morganstanley.com or by accessing the SEC’s website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About GlobalFoundries
GF is a leading manufacturer of essential semiconductors the world relies on to live, work and connect. We innovate and partner with customers to deliver more power-efficient, high-performance products for the automotive, smart mobile devices, internet of things, communications infrastructure and other high-growth markets. With our global manufacturing footprint spanning the U.S., Europe, and Asia, GF is a trusted and reliable source for customers around the world. Every day, our talented, global team delivers results with an unwavering focus on security, longevity, and sustainability.

©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. or its subsidiaries. All other trademarks are the property of their respective owners.

Forward-Looking Statements
This press release includes “forward-looking statements” that reflect our current expectations and views of future events. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and include but are not limited to, statements regarding the terms, timing and expected completion of the offering and the Share Repurchase. These statements are based on current expectations, assumptions, estimates, forecasts, projections and limited information available at the time they are made. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” “outlook,” “on track,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a broad variety of risks and uncertainties, both known and unknown, including regarding market conditions, our business and the Selling Shareholder. Any inaccuracy in our assumptions and estimates could affect the realization of the expectations or forecasts in these forward-looking statements. Recipients are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date such statements are made and should not be construed as statements of fact. Except to the extent required by federal securities laws, we undertake no obligation to update any information or any forward-looking statements as a result of new information, subsequent events, or any other circumstances after the date hereof, or to reflect the occurrence of unanticipated events. For a discussion of potential risks and uncertainties, please refer to the risk factors and cautionary statements in our 2025 Annual Report on Form 20-F, current reports on Form 6-K and other reports filed with the Securities and Exchange Commission. Copies of our SEC filings are available on our Investor Relations website, investors.gf.com, or from the SEC website, www.sec.gov.

Investor Contact:	Media Contact:
ir@gf.com	erica.mcgill@globalfoundries.com

FAQ

What did GlobalFoundries (GFS) announce on March 11, 2026 about a secondary offering?

GF announced a 20,000,000-share secondary offering by Mubadala’s selling subsidiary. According to the company, the offering is by the Selling Shareholder and GF will not sell shares or receive proceeds.

Will GlobalFoundries (GFS) receive proceeds from the 20 million share offering?

No, GlobalFoundries will not receive proceeds from the offering. According to the company, all offered shares are sold by the Selling Shareholder, not by GF.

What is the $300 million share repurchase announced by GlobalFoundries (GFS)?

The repurchase is GF’s planned purchase of approximately $300 million of the Selling Shareholder’s ordinary shares. According to the company, it will buy at the underwriter price and close substantially simultaneously with the offering.

How will GlobalFoundries (GFS) fund the $300 million repurchase?

GF intends to fund the repurchase with cash on its balance sheet. According to the company, no debt financing for the repurchase was described, and it is part of the $500 million authorization.

Does the 20,000,000-share sale by Mubadala dilute existing GlobalFoundries (GFS) shareholders?

No dilution to outstanding shares will occur from the sale because the shares are being sold by Mubadala, not issued by GF. According to the company, GF is not selling any ordinary shares in the offering.

Who are the lead underwriters for the GlobalFoundries (GFS) secondary offering and is there an overallotment option?

J.P. Morgan Securities and Morgan Stanley are lead book-running managers. According to the company, underwriters have a 30-day option for an additional 3,000,000 shares (15% overallotment).