Anthropic set to start IPO roadshow next week as investors expect a lower valuation

Anthropic is expected to start its IPO roadshow next week, CNBC reported, as some investors now expect the company to list below a $1.5 trillion valuation. One investor told CNBC that $1 trillion to $1.25 trillion is a more likely target, although that could change with market conditions.

The Information reported on Friday that Anthropic will proceed with the roadshow next week, according to FourWeekMBA. A relay of that report by Wall St Engine said the company is still targeting a listing during the week of November 16, ahead of Thanksgiving; FourWeekMBA said it could not check that date against The Information's text. Anthropic's amended S-1 from November 2 still leaves the price range blank.

The figures have fallen fast. Anthropic was reported to have entered October targeting a $2 trillion valuation, and investors put the number around $1.5 trillion in the middle of the month, Axios reported. After AI stocks fell on Thursday, valuation discussions had dropped as low as $1 trillion, according to the Wall Street Journal, while Bloomberg cited investors putting it between $1.1 trillion and $1.3 trillion. The Nasdaq Composite closed down 5.5% on Thursday, almost 12% below its October 6 high.

"Investors will expect the IPO to be priced at least at the low end of previous expectations," Gil Luria, an analyst at D.A. Davidson, told CNBC. "The best way to set Anthropic up for success is to price the deal well." HSBC strategist Max Kettner told Bloomberg Radio that a conservative valuation, even one below $1 trillion, might be the best way for the IPO to lift the AI trade, Axios reported. Anthropic was privately valued at $965 billion in May.

On Friday, potential investors had questioned whether Anthropic could start the roadshow in the week of November 9 and still list in November, Reuters reported.