Anthropic sets IPO price range of $70 to $78 per share, targeting up to $64 billion

In brief

• Anthropic has set a price range of $70 to $78 per share for its Nasdaq IPO.
• At the top of the range the company could raise up to $64 billion, or around $90 billion including pre-committed purchases.
• The implied valuation of $1.1 trillion to $1.3 trillion is below some earlier analyst forecasts.

Price range set for the listing

Anthropic, the company behind the Claude chatbot, has set a price range of $70 to $78 per share for its initial public offering on the Nasdaq in New York (Anthropic to raise $64bn in major stock market listing – BBC News) (Anthropic sets price range of $70 to $78 in upcoming IPO as AI lab marches toward Nasdaq – CNBC). At the top of the range, the company could raise up to $64 billion (Anthropic sets a price range for its blockbuster IPO – Business Insider). The filing also states that investors including Broadcom, Google and Nvidia have agreed to buy $26 billion of shares at the IPO price. Including that commitment, the total could reach around $90 billion, which would exceed the $75 billion raised in SpaceX's June offering and make it the largest IPO on record.

Valuation below earlier forecasts

Some analysts had predicted a valuation of $2 trillion several weeks earlier. The company was valued at $965 billion after a $65 billion funding round in May.

Timing and market backdrop

The listing is expected to proceed later this month, although the company had not yet announced a specific date for the share sale. The timing is sensitive. Following the recent US midterm vote, the Nasdaq slid sharply as investors feared a Democrat-led Congress could slow AI development and the construction of data centres. Wider concern about the large sums being spent on AI, and whether that spending will pay off, also weighs on the sector.

Analyst reaction

She said it suggested Anthropic believes demand for its products will be there.

Key figures

• Price range per share: $70 to $78
• Amount to be raised: $57 billion to $64 billion
• Pre-committed investor purchases: $26 billion
• Total potential raise: around $90 billion
• Valuation at IPO: $1.1 trillion to $1.3 trillion
• Previous valuation (May funding round): $965 billion

Read also

• Anthropic makes IPO filing public ahead of expected record-sized Nasdaq debut