Mubadala Investment Company’s wholly-owned unit is raising $950 million from the sale of a stake in US-based chipmaker GlobalFoundries.

The proceeds from the secondary public offering, priced at $50.75 per share, will be received by Mubadala Technology Investment Company, GlobalFoundries said in a statement.

Shares of GlobalFoundries closed lower at $55.21 on Nasdaq, according to LSEG data.

The offering is expected to close on May 28, 2024, subject to regulatory conditions.

GlobalFoundries also plans to use the available cash to buy back $200 million of the shares at the offering price.

In addition, Mubadala Technology is expected to grant the underwriters a 30-day option to purchase up to an additional $112.5 million of GlobalFoundries’ ordinary shares, equal to 15% of the initial ordinary shares being sold to the public, the statement said.

Morgan Stanley & Co. and BofA Securities are acting as book-running managers for the offering.

In 2021, GlobalFoundries and Mubadala raised nearly $2.9 billion from the company’s IPO, which included an overallotment option.

Mubadala is GlobalFoundries’ largest shareholder, with an 85% stake before the new secondary offering, according to Bloomberg.

(Editing by Brinda Darasha;