GlobalFoundries stock slips in trading debut after company’s IPO priced at high end of range

1 month ago 11
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GlobalFoundries Inc. shares declined arsenic they began trading connected the Nasdaq Thursday, slipping beneath their archetypal nationalist offering price.

At 11:51 a.m. Eastern, GlobalFoundries GFS, -0.91% shares fell and touched an intraday debased of $44.50, and were past down astir 3% astatine $45.61. Late Wednesday, the Malta, N.Y.-headquartered institution priced shares astatine $47 apiece, the apical extremity of its forecast range.

GlobalFoundries is simply a third-party silicon wafer foundry, known arsenic a fabrication works oregon “fab” successful manufacture parlance.

Those third-party fabs similar GlobalFoundries marque silicon wafers for the bulk of spot makers that bash not person their ain fabs — companies similar Advanced Micro Devices Inc.  AMD, -1.22%,  Apple Inc.  AAPL, +2.54%  and Nvidia Corp.  NVDA, +0.98% In fact, GlobalFoundries was a rotation disconnected of AMD erstwhile the institution wanted to get retired of the fab business.

Read: GlobalFoundries IPO: 5 things to cognize astir the spot institution going nationalist successful a semiconductor shortage

GlobalFoundries distinguishes itself from different third-party fabs similar Taiwan Semiconductor Manufacturing Co. TSM, +1.45% and China’s Semiconductor Manufacturing International Corp.  688981, +0.22% by not being babelike upon Taiwan oregon China, arsenic hostilities betwixt the 2 would beryllium a immense occupation for U.S. strategical supply. Recently, China expressed dissatisfaction astatine President Joe Biden reasserting the U.S.’s committedness to Taiwan’s defense.

The company’s nationalist debut comes astatine a clip erstwhile the satellite is moving its mode done a planetary spot shortage with fabs having agelong lawsuit backlogs, but erstwhile IPOs are seeing their 1 of their biggest markets ever successful presumption of proceeds.

That said, the Renaissance IPO ETF IPO, +1.22% is up astir 6% year-to-date, compared with a 22% summation connected the S&P 500 index  SPX, +0.78%,  and a 20% summation connected the tech-heavy Nasdaq Composite Index  COMP, +1.16%.

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