Robinhood plans to participate in Anthropic’s initial public offering and is pushing for a larger allocation for retail investors, CFO Shiv Verma said. The brokerage does not control how many shares its customers ultimately receive: that decision rests with Anthropic and its underwriting banks. The allocation determines whether individual investors can buy shares at the IPO price rather than only after trading begins on the public market.
Retail IPO allocations could rise above 5%
Retail investors have typically received about 1% to 5% of shares in an IPO, Verma said. Some companies are now discussing allocations of 10% or 20%. In an interview on Monday, he noted that retail investors account for about 25% of stock-market trading, a level of participation that issuers may weigh when setting allocations.
A larger retail share could give more individuals the chance to subscribe at the offering price. But access to IPO shares does not guarantee that every customer who applies will receive an allocation, or that the shares will trade at the offering price once public trading begins. The issuer and its underwriters determine the distribution.
Anthropic’s revenue and spending draw investor attention
Anthropic disclosed to investors that third-quarter revenue reached $16.8 billion, nearly 12 times the level a year earlier. An amended filing with the U.S. Securities and Exchange Commission also listed about $895 billion in committed spending. The figures offer context for investors assessing the AI company’s expansion and potential IPO, but do not specify how many shares may be set aside for retail buyers.
Robinhood is competing with other retail-focused brokerages for access to Anthropic’s offering and future listings. IPO allocations can help brokerages attract customers, but the number of shares a platform can offer depends on the terms set for each deal.
SpaceX and Robinhood have cited higher retail targets
Verma said SpaceX has indicated it wants to allocate 15% to 20% of its IPO shares to retail investors. When Robinhood went public in 2021, it reserved 20% to 35% of its shares for customers. Allocation terms vary by offering, but the examples show that retail participation has become part of some companies’ and brokerages’ discussions about IPO structure.
Verma did not disclose the expected allocation for Robinhood customers in Anthropic’s IPO. Robinhood intends to participate and wants individual investors to receive a larger share, while the final allocation and the number of shares available to customers remain subject to decisions by Anthropic and its underwriters.