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Anthropic sets price range of $70 to $78 in upcoming IPO
CNBC • • business
Key Points:
- Anthropic plans to offer 825 million shares in its IPO at $70 to $78 per share, aiming for a Nasdaq debut on November 19, with a retail allocation target of about 20%, higher than typical IPOs.
- At the top end of the price range, Anthropic could raise up to $64.35 billion, valuing the company at $1.405 trillion on a fully diluted basis, up from a $965 billion valuation in May.
- The company secured a $26 billion private placement from major tech firms including AMD, Google, Microsoft, Nvidia, and TSMC, with shares not subject to lock-up agreements.
- Despite strong institutional demand and a covered book at the IPO price range, some investors are cautious about the valuation, with expectations lowered from $2 trillion to possibly below $1.5 trillion amid market and political uncertainties.
- Anthropic reported $33.24 billion revenue for the first nine months of 2024, a 1,200% increase year-over-year, but also a $104 billion net loss largely due to convertible notes and derivative liabilities; its run-rate revenue reached $81 billion by October's end.
