Anthropic launches roadshow for proposed $1.4 trillion IPO

Anthropic announced on Nov. 10 that it had launched the roadshow for its proposed IPO[1]. The offering comprises 825 million Class A shares: Anthropic is offering 801,351,354 shares, and existing stockholders are offering the remaining 23,648,646[1]. The expected price range is $70 to $78 per share[1]. Anthropic has applied to list the shares on Nasdaq under the ticker ANT[1]. Underwriters may buy up to 123.75 million additional shares from Anthropic under a 30-day option[1].

At the top of the proposed price range, the IPO implies a fully diluted valuation of about $1.4 trillion; excluding dilution, the market value would be about $1 trillion[2]. The public share sale is expected to raise between $57.75 billion and $64.35 billion[3]. Separately, Anthropic has agreements for a $26 billion private placement of Class N stock at the IPO price[4]. The named private-placement investors are AMD, Broadcom, Google, Micron, Microsoft, Nvidia and TSMC Partners[4]. Anthropic says it will receive no proceeds from shares sold by existing stockholders[1].

The proposed valuation is above the $965 billion valuation Anthropic reached in a May funding round, but below the $2 trillion it was reportedly targeting a couple of months earlier[3]. Anthropic reported run-rate revenue of $81 billion by the end of October, about $10 billion above the end of September; it reported third-quarter revenue of $17 billion and nine-month revenue of $33.2 billion[3]. Anthropic’s prospectus says its founders’ company will hold 50.1% of total voting power, while its Long-Term Benefit Trust can elect directors who make up a majority of the authorized board[5].