GlobalFoundries Announces IPO

Discussion in 'Frontpage news' started by Hilbert Hagedoorn, Oct 20, 2021.

  1. Hilbert Hagedoorn

    Hilbert Hagedoorn Don Vito Corleone Staff Member

    Messages:
    42,454
    Likes Received:
    10,269
    GPU:
    AMD | NVIDIA
    GlobalFoundries announced the commencement of its initial public offering of 55,000,000 ordinary shares, 33,000,000 of which are being offered by GF and 22,000,000 of which are being offered by GF's ...

    GlobalFoundries Announces IPO
     
  2. Ven0m

    Ven0m Ancient Guru

    Messages:
    1,813
    Likes Received:
    13
    GPU:
    GTX 1080M
    Their prospect says they have 500M shares. Selling 55k of them for $42-47 would mean the perceived value of of $21-23.5B.
    The geographical risk is kinda low, as they have plants in EU and US, but US may help US-only companies.

    They report that since 2018 they're on constant loss, but in 2021 it was the lowest. And they paid dividend in 2021. The research expenses were going down, which can be understood as they sold ASIC part and fired 7nm people. The demand is skyrocketing, but China and US may "suggest" their respectable manufacturers. Intel, TSMC, and Samsung are getting stronger too.

    I'd love to invest in chip making, but this doesn't look like a safe profits source. On the other hand "good profit & low risk" investment offers are basically Ponzi schemes (unless you're a billionaire too rich to fail).

    Can someone relate to this? It would be interesting for me to invest a tiny bit (can't do much more, as I don't count as bourgeoisie :D) just for the sake of it, but if there's virtually no chance for compensation, it wouldn't be fun at all.
     
  3. user1

    user1 Ancient Guru

    Messages:
    1,827
    Likes Received:
    663
    GPU:
    hd 6870
    well considering the current geo-political situation , Its relatively high risk , most of their fabs are in Singapore, if things turn sour in the asia-pacific region, going to be bad day for glofo, but maybe not as bad as everybody else so idk hard to say, definitely not something to put all of your chips in.
     
  4. JamesSneed

    JamesSneed Maha Guru

    Messages:
    1,304
    Likes Received:
    601
    GPU:
    GTX 1070
    This seems like a high price for what feels like an IPO to save the company. Nope.
     

  5. Ahmad Bilal

    Ahmad Bilal Active Member

    Messages:
    72
    Likes Received:
    11
    GPU:
    Radeon
    btw, correction.. its not 55k but 55 million. That is 10-12% of the total (if 500M is correct). Everyone knows that they have 12nm process which is matured enough, and 10nm should be pretty achievable as well. With the ongoing global supply shortage and high demand .. they have plenty of orders at least for next 2-3 years. It seems they are now focusing on 5G, IoT, and other non-processor manufacturing.

    This money they are raising, should help them cover some losses, and build a foundary or two..on next 7nm or 5nm... if all goes well. Not a bad hand if you ask me.
     
  6. MrBonk

    MrBonk Ancient Guru

    Messages:
    3,287
    Likes Received:
    212
    GPU:
    MSI RTX 2080
    Considering the global market for chip manufacturing isn't ever going to go away, it seems like a decent idea. Can GF stay relevant to current customer needs and be profitable though?
    I'm very tempted to invest a few thousand dollars but...
     

Share This Page