Anthropic IPO investors consider lower valuation amid tech stock selloff
Potential buyers are discussing a valuation range between $1.1 trillion and $1.3 trillion for the AI lab ahead of its marketing.
Prospective investors for the Anthropic PBC initial public offering (IPO) are rethinking the company's expected valuation following a post-election selloff in tech stocks, according to reports from Moneycontrol and Mint.
While the company had previously been expected to target a valuation between $1.5 trillion and $2 trillion, potential buyers are now discussing a range of $1.2 trillion to $1.3 trillion. Some investors may consider a valuation as low as $1.1 trillion, one person told Moneycontrol.
The shift in sentiment follows a period of volatility where the Nasdaq 100 index plunged 6.4 per cent on Thursday, wiping out $2.3 trillion in market value. Investors are also weighing the impact of the Democratic sweep of Congress, which could lead to more scrutiny regarding data center expansion.
Anthropic, which aims to hold its IPO the week of November 16 and could potentially raise up to $100 billion, has declined to comment on the matter. The company's roadshow was expected to begin next week.
Max Kettner, chief multi-asset strategist at HSBC Holdings Plc, told Bloomberg Radio that a valuation around $1 trillion could be a more comfortable level to reduce volatility risk. Michael Field, chief equity strategist at Morningstar, suggested the company might accept a lower valuation to avoid the reputational costs of delaying the IPO.
Other possibilities for the company include scaling back the size of the offering or postponing the listing. Investors are also awaiting October revenue figures to assess the growth of the Claude chatbot maker.