Anthropic IPO Demand Runs Several Times Over Offer; Bankers Weigh Price Above $70–$78 Range

Artificial intelligence company Anthropic's initial public offering is drawing heavy demand, and its bankers are considering pricing the shares above the range already filed, which could lift the valuation to $1.5 trillion or more. The Financial Times reported late on Tuesday, citing five people familiar with the matter, that institutional orders were strong on the first day of the roadshow and bankers expect the final price to come in above $70 to $78 a share.

The valuation math: $1.5 trillion fully diluted

On a fully diluted basis, the filed $70 to $78 range implies a valuation of about $1.26 trillion to $1.41 trillion; a $1.5 trillion valuation would work out to roughly $83 a share. Bloomberg reported on Wednesday that prospective investors have indicated interest in several times the number of shares on offer. CNBC reported earlier that the book was already covered on an allocable basis on the first day, with institutional demand stronger than for SpaceX at the same stage.

Deal size and timetable

Under the amended prospectus Anthropic filed with the U.S. Securities and Exchange Commission on November 10, the company plans to sell 825 million Class A shares, raising up to about $64.35 billion, with underwriters holding an option on a further 123.75 million shares. A concurrent $26 billion private placement includes Google, Nvidia, Microsoft, AMD, Broadcom, Micron and TSMC. Anthropic's annualized revenue run rate was about $81 billion as of October 31, up about $10 billion in a month. Pricing is expected on November 18, with trading to begin on the Nasdaq on November 19 under the ticker ANT.

No new range has been filed

Anthropic has not filed a new price range with the SEC and has not confirmed any increase; Goldman Sachs declined to comment to the Financial Times, and Anthropic did not respond to Bloomberg's request for comment. If the final price comes in above the range, total proceeds could pass $100 billion, which would make it one of the largest IPOs on record. Sources: Financial Times; Bloomberg; SEC filing.