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‘Largest IPO Ever’ Faces Challenges: Anthropic’s Listing Valuation Divides, $1.5 Trillion Still Seen as Too Expensive
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- DeepHorus
Reuters reported on November 6 that AI company Anthropic's initial public offering (IPO) plan is facing investor doubts over its valuation. Some investors believe that even if the company's valuation is cut to $1.5 trillion (about RMB 10.03 trillion), it is still too high. Anthropic declined to comment on the concerns. The company is aiming for the largest IPO in history, but differences between buyers and sellers over the final pricing have already emerged.
Anthropic originally planned to start its roadshow in the week of November 9, set pricing the following week, and seek to list in November. The company initially sought a valuation of as much as $2 trillion (about RMB 13.37 trillion). IT Home cited a Wall Street Journal report on November 3 saying that last week's sharp selloff in tech stocks is changing how institutional investors planning to participate in Anthropic's IPO assess the valuation of this AI company. The valuation level discussed in the market for months had been close to $2 trillion, but it has now fallen significantly.
These investors have told Anthropic and its advisory team that the valuation at the IPO later this month should be between $1.5 trillion and $1.6 trillion. That range is far below the level close to $2 trillion previously discussed in the market. The downward revision in valuation expectations reflects greater caution among subscribers amid increased volatility in tech stocks. Anthropic did not publicly respond to the valuation range.
Three large investors planning to participate in the IPO believe the valuation should be lowered further. One of the investors believes the valuation may be closer to $1 trillion (about RMB 6.69 trillion). From $2 trillion to $1 trillion, the expectations of buyers and sellers differ by half, but this does not mean the company has accepted a halved pricing. The valuation disagreement will still be tested by the market during the roadshow and pricing stages.
Investors' caution is also related to the market environment and the company's financial condition. Reuters said that a violent selloff in tech stocks, combined with Anthropic's previous quarterly losses and huge commitments for AI infrastructure spending, has led subscribers to demand a larger discount. Some investors are still waiting for October revenue data to judge whether the recently slowed growth has regained momentum. These factors together have increased the difficulty of IPO pricing.
Against the backdrop of continuously lowered valuation expectations, Anthropic's listing timetable remains in focus. Tech media outlet The Information reported that Anthropic plans to continue its IPO roadshow next week. The company still plans to go public in the week of November 16, just before Thanksgiving. If the valuation disagreement cannot be bridged, the listing process may face more uncertainty.
The market will next focus on whether October revenue data and roadshow feedback can support pricing. Anthropic's refusal to comment on the concerns makes it still difficult for outsiders to form a consistent expectation for the final valuation. From $2 trillion to $1.5 trillion, and then to $1 trillion in the eyes of some investors, the pricing game for this largest IPO in history continues. The final listing size and valuation will depend on the balance between investors' willingness to subscribe and the company's financing needs.
