On Thursday, 28th Eastern Time, GlobalFoundries (also known as GlobalFoundries in China) was listed on the Nasdaq under the stock code of GFS, with an opening price of US$47. The price was flat, but it fell quickly, approaching noon. Turning up, it rose to 48 US dollars at the refreshing daily high, an increase of more than 2.1%, and then fell again, once falling to 44.5 US dollars, a decline of 5.3%. Since then, the stock price’s decline has narrowed, and finally closed down about 1.28%, closing at 46.4 US dollars, and further fell after the market, falling below 46 US dollars, a drop of more than 1%.
Estimated at the closing price, GlobalFoundries, with 534.7 million shares outstanding, has a market value of approximately US$24.8 billion.
Global Foundry’s price is at the upper limit of the IPO target price range of 42 to 47 US dollars. Based on this estimate, its IPO issuance of 55 million shares can raise about 2.6 billion US dollars. Excluding the listing of blank check companies such as SPAC, GlobalFoundries has created the third largest IPO in US stocks since the beginning of this year, second only to “South Korea Amazon” Coupang, which has raised more than US$4.5 billion in IPOs, and raised more than US$4.4 billion in IPOs. Didi Chuxing is the first ride-hailing service in China’s China Network.
Global Foundry’s listing comes at a time when the global chip shortage has severely affected a variety of industries, forcing industries such as automobile manufacturing and electronics production to reduce production. In the prospectus, GlobalFoundries also specifically mentioned the global shortage of chip supply and introduced it as one of the important backgrounds in the industry. It predicts that the imbalance between semiconductor supply and demand is expected to improve in the medium term. In the semiconductor industry, the revenue of the entire industry is expected to double in the next 10 years.
The prospectus shows that GlobalFoundries’ revenue has continued to decline in the past two years, but its losses have shrunk. Net revenue in 2019 was US$5.613 billion, a decrease of approximately 6.2% from 2018. In 2020, it fell 16.5% from 2019 to US$4.815 billion. The net loss in 2020 was US$1.351 billion, which was 51% narrower than the loss in 2018. This is lower than the 2019 loss of US$1.371 billion.
In the first half of this year, GlobalFoundries’ net revenue was US$3.038 billion, an increase of 11.2% over the same period last year. This year, it is expected to reverse the decline in revenue in the past two years. The net loss in the first half of this year was US$301 million, a year-on-year decrease of nearly 44%. The commentary believes that the performance in the first half of the year benefited from the surge in chip demand under the global “core shortage” situation.
At the same time, the listing of GlobalFoundries is also the epitome of the booming US IPO market.
Last year, U.S. listed companies raised a total of US$435 billion through stock issuance, far exceeding the previous year’s record of US$279 billion in 2014, of which about a quarter came from traditional IPOs, and the annual IPO financing reached a record US$100 billion. In terms of fundraising, three of the top ten IPOs in the history of American technology companies appeared last year, namely Snowflake, which raised US$3.9 billion, DoorDash and Airbnb, which raised US$3.4 billion and US$3.7 billion, respectively.
This year, “Lego Game” Roblox, the largest cryptocurrency exchange in the United States, the first share of the digital currency exchange Coinbase, and Robinhood, an online celebrity broker favored by retail investors, have continuously set off a climax in the IPO market. Dealogic data shows that since the beginning of this year, the scale of U.S. stock IPOs has reached a record high of more than $250 billion.