NEW YORK: Shares of GlobalFoundries Inc, which is owned by Abu Dhabi's sovereign wealth fund Mubadala Investment Co, opened flat on the Nasdaq on Thursday, giving the chipmaker a market capitalization of about $26 billion. GlobalFoundries finished its first day of trading at $46.40, slightly lower than the $47 per share it priced in the initial public offering (IPO).
The chip maker raised $2.6 billion in the third-largest IPO in the United States so far this year, trailing South Korean e-commerce giant Coupang Inc and ride hailing company Didi Global Inc.
GlobalFoundries, which disclosed revenue growth of 13% for the six months ended June 30, has benefited from surging demand for chips, due to a global shortage that has forced automakers and other electronics firms to cut production. But the company's gross margins remain markedly lower than other chipmakers at 10.8% in the six months ended June 30, well below the margins of 40% or more enjoyed by Taiwan Semiconductor Manufacturing Co or Intel Corp.
Comments
Comments are closed.