News

Tag: IPO

  • Anthropic Targets $1.4 Trillion Value in Giant IPO

    Anthropic Targets $1.4 Trillion Value in Giant IPO

    Anthropic, the artificial intelligence company behind the Claude chatbot, is aiming for a valuation of up to $1.4 trillion in its planned stock market listing, in what would be one of the largest technology floats in history. The company has set a price range of $70 to $78 per share for the sale of 825 million shares, according to an updated prospectus filed with US regulators.

    The offering is expected to raise up to $64.4 billion from public investors, with the shares set to trade on the Nasdaq stock exchange under the ticker symbol ANT. Pricing is expected on November 18, with trading due to begin the following day, according to reports citing people familiar with the plans.

    At the top of the price range, Anthropic would be valued at about $1.4 trillion on a fully diluted basis, a measure that includes securities such as stock options and restricted stock. On a non-diluted basis, excluding those securities, the company’s market value would be about $1 trillion.

    Anthropic will also raise $26 billion through a separate private placement with cornerstone investors, including Alphabet’s Google, Nvidia and Advanced Micro Devices. The private placement sits alongside the public offering and forms part of a fundraising effort that could approach $100 billion if an over-allotment option for underwriters is exercised.

    The valuation marks a sharp rise from the $965 billion at which Anthropic was last valued in a private funding round in May. Investors had previously discussed a valuation of as much as $2 trillion, but expectations have come down amid the company’s substantial infrastructure commitments and recent volatility in AI-related stocks.

    Anthropic’s run-rate revenue was roughly $81 billion as of October 31, up $10 billion from September 30, according to the IPO filing. The company, founded five years ago, has grown rapidly as its Claude chatbot has become one of the leading products in the race to build advanced AI systems.

    Goldman Sachs and Morgan Stanley are the leading investment banks underwriting the offering. The listing will test Wall Street’s appetite for artificial intelligence companies at a time when higher borrowing costs, geopolitical turmoil and elevated bond yields are weighing on the market for new share sales.

    Reports in the Financial Times, citing unnamed sources, have suggested bankers are weighing a higher price that could lift the valuation to $1.5 trillion or more. Anthropic has not confirmed any change to the terms, and the figures in the filing remain the official position.

    If the listing goes ahead as planned, Anthropic would become the first frontier AI laboratory to enter the public markets, giving ordinary investors a direct stake in one of the companies at the centre of the AI boom. The outcome will be closely watched as a measure of whether the enthusiasm for artificial intelligence that has driven markets in recent years can survive contact with public shareholders.

  • Anthropic Eyes $1.4 Trillion IPO in Biggest Test of AI Boom

    Anthropic Eyes $1.4 Trillion IPO in Biggest Test of AI Boom

    The company behind the Claude chatbot is heading for the stock market at a valuation of up to $1.4 trillion, in what is shaping up to be the biggest test yet of Wall Street’s faith in the artificial intelligence boom.

    Anthropic filed an updated prospectus with the US Securities and Exchange Commission on Tuesday, setting out terms for its blockbuster initial public offering. According to Reuters, the company 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.

    At the top of that price range, Anthropic would be worth about $1.4 trillion on a fully diluted basis, a figure that includes securities such as stock options and restricted stock. Without those securities, its market value would be about $1 trillion. The shares are expected to begin trading on the Nasdaq on 19 November under the ticker symbol ANT.

    Alongside the share sale, Anthropic plans to raise a further $26 billion through a separate private placement with cornerstone investors including Google, the chipmaker Nvidia and Advanced Micro Devices. The two deals together could bring in as much as $90.4 billion, making it one of the largest capital raisings in stock market history.

    The valuation is lower than some early expectations. Investors had at one stage discussed a figure as high as $2 trillion, but hopes have cooled as markets question the enormous cost of building AI systems and the time it will take for the spending to pay off. Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, described the pricing as essentially a reassessment of the company’s value in a more challenging environment for AI.

    The road to the listing has not been smooth. Hours before the updated prospectus was filed, an earlier set of terms was briefly circulated to investment banks late on Monday and then withdrawn, according to emails seen by Reuters. Those preliminary terms had pointed to about 867 million shares at up to $80 each, which could have raised as much as $69.3 billion. The final filing set a lower price range and smaller proceeds.

    Anthropic’s own numbers show why investors are still paying attention. The company’s run-rate revenue stood at roughly $81 billion at the end of October, up $10 billion in a single month, according to the filing. It was last valued at $965 billion in a private funding round. Goldman Sachs and Morgan Stanley are leading the offering as underwriters.

    Investors will also be watching what the listing says about rival OpenAI, which is seeking to raise $30 billion in what is expected to be its final private funding round before a possible listing early next year. OpenAI recently secured $11 billion at a $1.25 trillion valuation, below the $1.5 trillion it had initially sought.

    The prospectus does not hide the risks. Anthropic warns that its models have behaved in unintended or misaligned ways in the past and could do so again, including by taking harmful actions nobody directed. It also cautions that advances in AI could outpace its ability to put adequate safety measures in place, and that competitors could gain an edge by developing models faster. Whether the market shares its excitement at a $1.4 trillion price will become clear when trading begins.

  • Anthropic IPO Seeks $1.4 Trillion Valuation in AI Test

    Anthropic IPO Seeks $1.4 Trillion Valuation in AI Test

    Anthropic, the artificial intelligence company behind the Claude chatbot, has set the price range for its long-awaited stock market debut at $70 to $78 a share, a listing that could value the company at up to $1.4 trillion and raise as much as $64.4 billion. The updated prospectus, filed with the US Securities and Exchange Commission on Tuesday, turns the offering into the defining test of whether Wall Street still believes in the AI boom.

    The company plans to sell 825 million shares in the initial public offering. At the top of the price range, Anthropic would be worth about $1.4 trillion on a fully diluted basis, counting stock options and unvested shares. Without those securities, its market value would be closer to $1 trillion. A separate $26 billion private placement will see cornerstone investors including Google, Nvidia and Advanced Micro Devices buy shares alongside the public offering, taking the total raised to as much as $90.4 billion.

    The range is lower than many investors had expected only a few months ago, when a valuation of as much as $2 trillion was discussed. Expectations have cooled as investors focus on the enormous cost of building and running advanced AI systems: Anthropic has nearly $900 billion in computing commitments with partners including Amazon and Google. “What we are seeing is essentially a reassessment of Anthropic’s value in a more challenging AI environment,” Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, told Reuters. “The company continues to post impressive growth, but investors are increasingly focused on the cost of generating that growth.”

    Anthropic’s financial growth remains extraordinary. Its run-rate revenue reached roughly $81 billion at the end of October, up $10 billion in a single month, according to the filing. Revenue in the third quarter rose 47 percent from the previous quarter to $16.96 billion, while revenue for the first nine months of the year totalled $33.2 billion, against $2.5 billion a year earlier. The company was last valued at $965 billion in a private funding round in May.

    The listing comes at a nervous moment for AI stocks. The Nasdaq recorded its deepest one-day fall in 19 months last Thursday, wiping trillions of dollars from market values as investors questioned whether the huge spending on data centres will ever pay off. Rival OpenAI recently raised $11 billion at a $1.25 trillion valuation, below the $1.5 trillion it had first sought, and is now seeking a further $30 billion before a possible listing of its own early next year.

    Anthropic’s shares are expected to trade on the Nasdaq under the ticker symbol “ANT”, with pricing expected on November 18 and trading to begin around November 19. Goldman Sachs and Morgan Stanley are leading the banks underwriting the offering. Founded in 2021 by researchers who left OpenAI after disagreements over governance and AI safety, the company is led by chief executive Dario Amodei. Its own filing is strikingly candid about the risks, warning that its models have in the past behaved, and may in future behave, in unintended or misaligned ways. Yet the prospectus also speaks of a vision to “bring forth an age of miracles”. Whether investors buy that vision at a $1.4 trillion price will say a great deal about the future of the AI boom.

  • SECP Seeks Records From 30 Banks in IPO Probe

    SECP Seeks Records From 30 Banks in IPO Probe

    The Securities and Exchange Commission of Pakistan has widened its investigation into the withdrawn initial public offering of SE Fruits and Vegetable Limited, seeking export records from seven banks and foreign-exchange details from 30 banks. The regulator issued a statement on Saturday outlining the latest steps in the inquiry.

    According to the regulator, the seven banks have been asked to provide export records for the company, which was formerly known as Shaheen Enterprises. Separately, 30 banks have been asked for information about foreign remittances, export proceeds and other foreign-exchange transactions received in the accounts of the company’s sponsors and directors. Some banks have submitted their responses, which are currently under review, the regulator said.

    The SECP launched the investigation on October 21 under Section 29 of the SECP Act, 1997, read with Section 139 of the Securities Act. The inquiry follows concerns about the company’s financial disclosures and audit, which led the regulator to halt the offering in October, after which the company withdrew it.

    SE Fruits, a Sargodha-based exporter of fruit and vegetables, had planned to raise up to Rs1.92 billion by offering 30 million shares at Rs40 each. The prospectus was approved in September, and book building was fully subscribed within two hours, but the company announced on October 13 that it would withdraw the IPO and refile with fuller disclosure. The regulator later said it had found material discrepancies in the prospectus, and the stock exchange confirmed on October 22 that the entire subscription amount had been refunded to investors.

    The investigation team has received information from the IPO’s joint lead managers, Topline Securities and Growth Securities, while the response submitted by consultant Parker Russell-A.J.S. is being examined. The regulator is also reviewing the company’s IPO application and shareholder information.

    The Central Depository Company provided an investor list and was subsequently asked to submit shareholder lists and transfer histories of individuals named in the prospectus. Its response, received on November 2, was partial and remains under review. The company’s auditor, Ilyas Saeed and Company, requested additional time to provide the required information and records, and the SECP granted the extension.

    The regulator said it will examine the preparation and approval of the prospectus, identify any lapses or negligence, and determine those responsible. Nothing has been proven against the company or anyone involved, and the investigation is continuing as the regulator examines the financial records, banking transactions and shareholder information submitted by the parties.