Anthropic’s planned stock market debut, one of the most anticipated listings of the year, is facing growing resistance from investors over its proposed $1.5 trillion valuation, following a sharp sell-off in artificial intelligence stocks.
Potential investors are raising doubts about whether the AI company can proceed with its planned roadshow next week in time for a November listing, four people familiar with the investor discussions told Reuters.
Investors are pushing for a more attractive valuation to commit to the offering, with some viewing the recently discussed $1.5 trillion figure as being at the high end of expectations. The Wall Street Journal reported on Thursday evening that three major investors planning to take part believe the valuation will probably need to be reduced, with one suggesting it could end up closer to $1 trillion.
The offering, which had been expected to raise as much as $100 billion, would be the largest initial public offering on record. At one point this year, investors had expected the listing to take place in October at a valuation as high as $2 trillion.
The roadshow had been expected to begin in the week of 9 November, with pricing the following week. But investors are also waiting for Anthropic’s October revenue figure, which the company left blank in its updated filing with the U.S. Securities and Exchange Commission, to judge whether growth has picked up after a slowdown in recent months.
The company’s amended filing put third-quarter revenue at about $17 billion and disclosed roughly $895 billion in commitments for AI computing power, chips and other infrastructure.
Anthropic declined to comment on the investor doubts.
The uncertainty follows the sharpest sell-off in technology stocks in a year. Companies in the Nasdaq Composite lost a combined $2.5 trillion in market value on Thursday, 5 November, according to the Journal, and more than 50 S&P 1500 technology stocks fell by 10 percent or more.
A decision to delay the offering would likely fuel further concern about the health of the AI boom, at a time when ballot measures in many U.S. states limiting data centre development have hardened political opposition to the AI buildout.
Source: Reuters, via Business Standard — https://www.business-standard.com/amp/world-news/investors-seek-lower-valuation-as-ai-backlash-clouds-anthropic-ipo-plans-126110602042_1.html
