Anthropic IPO oversubscribed 6 times, existing backers to get priority
What's the story
Anthropic, a leading player in the artificial intelligence (AI) sector, has seen its upcoming initial public offering (IPO) oversubscribed by nearly six times. The unprecedented demand for shares of the company that developed the Claude AI models could lead to some investors receiving fewer shares than they had anticipated. According to Bloomberg News, bankers have told investors that priority will be given to existing backers during this process.
Fundraising details
IPO could raise $64.4 billion
Anthropic, along with some of its existing shareholders, is looking to raise as much as $64.4 billion through the IPO. A separate private placement is expected to bring in another $26 billion.
Together, these two transactions could rake in around $90.4 billion, potentially making it the largest fundraising exercise of its kind.
The company plans to sell 825 million shares in a price range of $70-$78 apiece.
Market debut
Shares to start trading on November 19
Anthropic's shares will start trading on the Nasdaq Global Select Market from November 19 under the ticker symbol ANT.
The company is targeting a fully diluted valuation of around $1.4 trillion.
Despite concerns over the AI industry's reliance on advanced chips and high costs of developing and running AI models, investor interest in Anthropic remains strong.
Strategic investments
NVIDIA to invest $10 billion in private placement
NVIDIA, a key strategic partner of Anthropic, has agreed to buy around $10 billion worth of shares in the $26 billion private placement.
Other tech giants such as Google, AMD, Microsoft, Broadcom, Micron, and TSMC are also participating in this placement.
The company has committed tens of billions of dollars to secure access to advanced computing infrastructure including chips necessary for training and running its AI models.
Revenue growth
Goldman Sachs, Morgan Stanley leading the IPO
Anthropic's rapid revenue growth is a major factor behind its ambitious valuation.
As of October 31, the company reported a revenue run rate of $81 billion, up by $10 billion from September-end. The figure was at $65 billion at the end of July.
Goldman Sachs and Morgan Stanley are leading the IPO with participation from 20 other banks.