Financeupdated 15m ago2 min read
Anthropic Sets IPO Price Range at $70 to $78, Targets Up to $1.4 Trillion Valuation
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“It comes at a volatile moment in markets, with investors questioning the sustainability of the A.I. boom.”
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Anthropic sets share price range of $70 to $78 for its IPO. Valuation targets up to about $1.4 trillion based on the SEC filing.
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IPO price and valuation
Anthropic set an IPO price range of $70 to $78 per share and said the offering could value the company at up to $1.4 trillion, according to an updated filing. Anthropic planned to sell 825 million shares in the IPO, and the filing described a unit price expected to be in a range from 70 to 78 dollars. Anthropic also disclosed that it would raise up to $64.4 billion by selling 825 million shares in the IPO, with the indicative price band of between $70 and $78 per share.
Anthropic’s filing said it would also raise $26 billion via a separate private placement with cornerstone investors including Alphabet’s Google and Nvidia, bringing the total amount it expected to raise to up to $90.4 billion. Anthropic’s shares were expected to trade on the Nasdaq under the ticker symbol "ANT" after the IPO closes, with Goldman Sachs and Morgan Stanley leading the syndicate of investment banks underwriting the offering.
Roadshow, retracted terms
Reuters reported that a prospectus sent by mistake briefly circulated confidential information about Anthropic’s IPO among banks participating in the operation. The emails reviewed by Reuters indicated that a company representative sent a version of a reference document showing it planned to sell about 867 million shares at a price between $70 and $80 per share, and the document was withdrawn in the evening. Anthropic later sent a second message clarifying that the information relating to price setting was inaccurate and that a corrected version would be transmitted.
Renaissance Capital described the timing as unfavorable for Anthropic’s IPO planned for early next week, while saying the process was moving forward. NBC News said details of the blockbuster deal were briefly circulated to investment banks before being retracted late on Monday, according to emails seen by Reuters.
Risks and what investors face
Anthropic’s IPO filing warned that its AI systems could pose "catastrophic or existential risk to humanity," and it said safeguards are incomplete and may fail to operate as intended.
The filing also said there is a risk that such systems could "take harmful actions independently and at scale without human intervention," and it described scenarios that could adversely affect its reputation, brand, business, and financial condition.
Anthropic’s prospectus highlighted that it had deployed safeguards intended to detect and block misuse and misbehavior, while conceding that those safeguards "may be outdated in light of evolving threat models."
France 24 quoted Art Hogan, an analyst with B. Riley Wealth Management, saying investors were concerned about the cost of developing AI and how it is financed.
NBC News said Anthropic’s prospectus warned that competitors could gain an edge by developing models faster and that AI advances could outpace Anthropic’s ability to put adequate safety and security measures in place.