Anthropic IPO draws about 6 times the orders for shares on offer
Anthropic's IPO has drawn about 6 times the orders for the shares available, Bloomberg reported, in what could be the largest first-time share sale on record.
Demand far outstrips supply
Anthropic's initial public offering has drawn about 6 times the orders for the shares available, Bloomberg News reported on Thursday, in what could be the largest first-time share sale on record. Bankers told prospective investors that Anthropic will prioritise its existing backers, leaving some would-be buyers with smaller allocations than expected, the report said, citing people familiar with the matter.
The report added that details of the offering, including the demand for shares, could change. Anthropic could not immediately be reached for comment, Reuters reported.
The terms of the deal
The AI lab and some of its existing shareholders aim to raise up to $64.4 billion by selling 825 million shares priced between $70 and $78 each, valuing the maker of the Claude chatbot at up to $1.4 trillion. That valuation sits slightly below some investor expectations, setting up a key test of Wall Street's confidence in the artificial intelligence boom.
Anthropic's latest filing puts its annualised revenue run rate at $81 billion as of October 31, a figure that underlines how fast the business has grown even as it reports large losses. A separate $26 billion private placement goes to large technology companies. Trading is due to begin on the Nasdaq under the ticker ANT on November 19.
- Orders vs shares availableAbout 6 times
- Shares offered825 million at $70-$78
- Raise at top of rangeUp to $64.4 billion
- ValuationUp to $1.4 trillion
- Revenue run rate, Oct. 31$81 billion
Growth behind the demand
Anthropic reported sales of $16.9 billion for the September quarter, up 46% from $11.5 billion a quarter earlier, according to its IPO paperwork cited by Morningstar. Its annualised revenue run rate reached $81 billion as of October 31, up $10 billion from the end of September.
The demand was driven by anchor-size indications of interest, Bloomberg reported, and Morningstar analyst Malik Khan called the company undervalued, noting the deal was priced during a time of high volatility and souring sentiment on the AI trade. The roadshow kicked off on Tuesday, November 10, and the listing remains a key test of Wall Street's confidence in the artificial intelligence boom.
