22 hrs ago
AI IPO Wave Builds as Anthropic Listing Looms
Many companies are thinking about selling shares to the public.
Anthropic, an artificial-intelligence company, is expected to attract the most attention.
Other possible listings include Nscale, Aggreko and Oura Health.
OpenAI may also have a very large stock-market listing this year or next.
Companies are watching the market carefully before deciding when to proceed.
Some investors are interested in AI, data centers, power cooling and consumer health.
However, higher oil prices, wars and possible interest-rate increases could make investors more cautious.
Experts disagree on whether companies should move ahead now or wait for better conditions.
One expert said the large valuations sought by AI companies do not necessarily mean there is a bubble.
Anthropic is expected to be the largest prospective IPO in the current pipeline.
AI cloud firm Nscale, Aggreko and Oura Health are also considering public listings.
OpenAI is expected to launch one of the largest listings this year or next.
Anthropic reportedly seeks to match or exceed SpaceX’s $86 billion-plus IPO valuation.
Market participants cite oil prices, wars and possible higher interest rates as risks.
- Who
- Anthropic, OpenAI and other prospective issuers including Nscale, Aggreko and Oura Health.
- What
- A potential wave of initial public offerings is expected to include several AI-related and other companies.
- Where
- The companies are seeking access to the public markets.
- When
- The activity is expected during the traditional post-Labor Day push toward the end of the year; OpenAI could list this year or next.
- Why
- Companies are responding to investor interest in AI and related sectors while weighing uncertain market conditions.
Proceed With Listings
Wait for Better Conditions
IPO timing
Proceed With Listings
Some companies view the market as good enough and are preparing for public offerings despite uncertainty.
Wait for Better Conditions
Other companies are waiting for more optimal market conditions, while advisers note that timing is difficult to predict.
AI valuations
Proceed With Listings
Supporters argue that investor willingness to value SpaceX highly could help Anthropic justify an approximately $2 trillion valuation.
Wait for Better Conditions
The scale of the proposed valuations and earnings that may not appear for years could raise concerns about market excess, although one strategist said he does not see a bubble.
Investor demand
Proceed With Listings
Bankers see potentially strong investor interest in AI, data centers, power cooling and consumer health.
Wait for Better Conditions
Oil prices, geopolitical conflicts and possible interest-rate increases could reduce investor appetite for new listings.
Key facts
- Largest anticipated listing
- Anthropic is expected to draw the most attention among the prospective IPOs.
- Other candidates
- Nscale, Aggreko and Oura Health are identified as potential listings.
- OpenAI timing
- OpenAI is expected to launch a major listing this year or next.
- SpaceX comparison
- SpaceX’s June IPO exceeded $86 billion, according to the article.
- Anthropic valuation
- Anthropic is reportedly seeking a valuation of about $2 trillion.
- Market risks
- Rising oil prices, wars in the Middle East and Ukraine, and potentially higher interest rates are cited as headwinds.
- Market strategy
- Some companies are waiting for better conditions, while others consider the current market adequate.
Quotes
Lise Buyer
Founder of Class V Group, a consultancy for companies going public
“Most of them are heads down focused on getting the numbers in order, looking at the marketplace. Nobody is particularly trying to time around Anthropic ... because timing is always uncertain.”
livemint.com
Ajay Shah
Chair of technology investment banking at Deutsche Bank AG
“There are interesting areas in AI that would really pique investor interest, whether it is in the data center space, power cooling, consumer health or what have you.”
livemint.com
Matt Kennedy
Senior strategist at Renaissance Capital
“We’ve seen some companies decide to wait for the optimal conditions.”
livemint.com
Sources
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