TLDR
- Robinhood (HOOD) stock was down 0.05% as the brokerage fights for Anthropic IPO access.
- CFO Shiv Verma wants retail to get a bigger slice of the offering.
- Issuers and their banks, not Robinhood, decide the retail split.
- Anthropic reported Q3 revenue of $16.8 billion and about $895 billion in committed spending.
- The IPO is slated to happen before the US Thanksgiving holiday.
Robinhood Markets (HOOD) stock edged down 0.05% as the brokerage competes for a spot in Anthropic’s IPO. Chief Financial Officer Shiv Verma spoke about it Monday on Bloomberg Television.
“It’s a food fight out there,” Verma said. He added that Robinhood will let its customer demand speak for itself.
Robinhood collects requests from its clients. It then sends them to the company going public and the banks handling the sale.
Robinhood does not set the split. Issuers and their banks decide how much goes to retail.
Anthropic filed for its IPO on Oct. 26. The deal is slated to happen before the US Thanksgiving holiday later this month.
The company disclosed Monday that it plans to spend more than $895 billion in the years ahead. Its amended SEC filing lists about that much in committed spending.
Retail Wants a Bigger Slice
Verma said retail used to get only 1% to 5% of IPOs. Companies now ask whether they can offer 10% or 20%, he said.
He pointed to retail’s roughly 25% share of the equities market. “Retail is here, they are a force to stay,” he said.
SpaceX wanted 15% to 20% for retail in its June IPO. All eligible customers who put in requests at Robinhood, Charles Schwab, Fidelity, SoFi and E*Trade got some stock.
Verma said Robinhood set aside 20% of its own stock for customers in its IPO. Axios reported the 2021 figure was 20% to 35%.
Anthropic told investors its third-quarter revenue hit $16.8 billion, Bloomberg reported. That is nearly 12 times a year earlier.
Some investors are waiting for Anthropic’s pricing before backing OpenAI. OpenAI cut its funding target by $10 billion.
Quiet Period Limits What Robinhood Can Say
Robinhood cannot take orders until an offering opens. A regulatory quiet period also limits what Verma can disclose.
Instead, he pointed to customer activity. He said people are depositing and trading more, which he called a good sign.
Bigger allocations come with risk. SpaceX’s post-IPO slide took 20% off its peak within a week of its June listing.
Verma said Robinhood will take part in the Anthropic IPO.
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