Banks Turn Away Orders From China and Hong Kong for Anthropic's IPO

According to the report, some banks would not take orders from those investors, and others thought it unlikely they could secure allocations for them. Some of the people tied the restrictions partly to the US International Traffic in Arms Regulations, which govern trade in defence products and services. The limits are not set out explicitly in Anthropic's IPO prospectus, Investing.com noted.

The exclusion closes off a large pool of capital from one of the biggest listings on record. Investing.com put the offering's valuation at $1.4 trillion, with Anthropic and existing shareholders seeking to raise up to $90.4 billion through the IPO and a concurrent private placement. Orders have reportedly reached about six times the shares on offer, so the banks have plenty of other demand.

Some of the investors who were turned away are still trying to buy in, according to the reports. A family office linked to a Chinese technology founder tried to place an order through a trust registered in the British Virgin Islands, and others are considering special-purpose vehicles and swaps. The restrictions cover allocations in the offering itself and do not necessarily stop anyone buying shares once trading begins.

The arrangement mirrors SpaceX's recent listing. Investors from China and Hong Kong were left out of that allocation too but could buy shares in the market after the debut.

The question is especially sensitive for Anthropic. It is challenging in court the Pentagon's designation of the company as a supply-chain risk, and Washington is under pressure to tighten curbs on advanced AI technology reaching China after Nvidia chips were found in Chinese data centres.

Anthropic did not comment on the reported restrictions. After pricing on November 18, its shares are due to start trading on Nasdaq on November 19 under the ticker ANT.