Commentary: FOMO on mega IPOs like Anthropic? Read the filing, not the hype

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Anthropic’s upcoming IPO could fuel FOMO for many investors but excitement over a company’s prospects should not overshadow the fundamentals of investing, says Chez Anbu, head of…

Anthropic’s upcoming IPO could fuel FOMO for many investors but excitement over a company’s prospects should not overshadow the fundamentals of investing, says Chez Anbu, head of wealth advisory at OCBC.

SINGAPORE: These days, an outsized initial public offering (IPO) can generate so much buzz that it feels like an immediate deadline for investors to decide whether they want to be part of its future.

As Anthropic’s IPO comes closer into view following SpaceX’s blockbuster listing earlier this year, such struggles may again become real for many investors. But amid the “mega FOMO” created by mega IPOs, the basics of investing do not change.

The SpaceX listing showed how quickly enthusiasm can build around a company associated with a future technology. On its first day of listing, trading in its shares was the second largest by volume in the United States.

Interest was notable even in Singapore. Enquiries about US stocks among our clients more than doubled, while our client advisors reported heightened interest in SpaceX. Some clients subsequently gained exposure through direct shares and structured products.

Anthropic’s forthcoming IPO – with Nov 19 floated as a possible date – could generate similar interest. The Claude chatbot creator is reportedly targeting a valuation of up to US$1.4 trillion in its IPO and raising up to US$64 billion with shares priced between US$70 and US$78 each.

The target valuation marks one of the biggest Wall Street debuts of all time but falls short of the US$1.77 trillion record SpaceX set in June and earlier investors’ expectations of US$2 trillion.

Notwithstanding the recent brutal tech selloff, Anthropic could still be enticing for some investors given how its Claude model is used widely by individuals, businesses and government agencies. In Singapore, Anthropic recently opened an office and signed an agreement with the government covering AI safety and responsible adoption.

These may make the company unusually tangible for some investors.

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