Anthropic reserves up to 20% of IPO for retail investors

Anthropic expects retail investors to receive up to 20% of the Class A shares in its initial public offering. Most large U.S. listings set aside 5% to 10% for individuals. The figure first appeared in the amended prospectus the company filed on Tuesday, Nov. 10. The filing says allocations to retail investors "both in the United States and in other countries" could reach that level, "though final amounts will be based on actual demand in the offering," according to Economic Times Legal, which reviewed the filing.legal.economictimes.indiatimes.com

The offering includes 825 million shares at $70 to $78 each, so a 20% retail slice would be about 165 million shares. That works out to roughly $12.2 billion at the $74 midpoint, according to calculations published by The Globe and Mail. The earlier Nov. 2 amendment named the retail brokerages but gave no percentage, FourWeekMBA noted.theglobeandmail.com+1

How individuals can take part

The prospectus names six brokerages that will sell IPO shares: Charles Schwab The Charles Schwab Corporation ↗ 0.32%, Fidelity, Robinhood ↘ 2.39%, Trade-PMR, SoFi and E*TRADE Morgan Stanley ↗ 0.25% from Morgan Stanley, according to an analysis of the filing. Each firm sets its own eligibility rules. SoFi has no account minimum, while Fidelity requires at least $25,000 in retail assets at the firm, CNBC reported. Investors usually submit an indication of interest, but there is no guarantee they will get shares. "If customer demand is higher than our supply, we can't fulfill every request in full," Robinhood says on its website, CNBC noted.cnbc.com+1

The retail tranche is about double Arm Holdings' ↘ 2.58% roughly 10% in 2023. Reddit ↘ 2.10% set aside about 8% and Instacart Maplebear Inc. ↗ 0.02% up to 5%. SpaceX also used a 20% allocation, investingLive reported. One analyst cited by the outlet warned that retail buyers can be less sensitive to price than institutions. The analyst called the structure "a great deal for the company, but not necessarily for the people buying."investinglive.com

Deal terms and timing

At the top of the price range, Anthropic and selling shareholders would raise up to $64.4 billion. On a fully diluted basis, that would value the Claude developer at about $1.4 trillion, Reuters reported. The company also plans a separate $26 billion private placement with cornerstone investors, including Google Alphabet Inc. ↘ 0.38%, Nvidia ↘ 5.47% and Advanced Micro Devices ↗ 1.30%, Reuters added.reuters.com

Anthropic launched its roadshow on Nov. 10 and has applied to list on the Nasdaq Global Select Market ↗ 1.40% under the ticker "ANT." The company is planning to price the deal on Nov. 18 and begin trading on Nov. 19, CNBC reported, citing people familiar with the plans. In the prospectus, the co-founders wrote that "everyone who owns our stock, whether an institution or an individual, becomes part of that effort."cnbc.com+1