Institutional buyers in mainland China and Hong Kong are largely blocked from Anthropic’s landmark public offering due to U.S. defense-trade regulations, Bloomberg reported.
- Underwriters have declined or cast doubt on share allocations for investors in mainland China and Hong Kong, citing U.S. International Traffic in Arms Regulations.
- The report suggested that few Chinese investors are turning to British Virgin Islands trusts, special purpose vehicles, and swap deals to gain exposure to the IPO.
- Despite the regional exclusions and recent volatility in AI equities, Anthropic’s targeted $1.4 trillion valuation offering is roughly six times oversubscribed ahead of its November 19 Nasdaq debut.
Institutional investors in China and Hong Kong are reportedly being shut out of Anthropic’s (ANT) initial public offering, underscoring how intensifying U.S.-China tech rivalries and national security rules are reshaping global capital markets.
Several U.S. banks involved in the deal have either refused to accept orders from buyers in those regions or indicated that securing share allocations is highly unlikely, according to a Bloomberg report that cited people familiar with the matter.
The restrictions stem in part from the U.S. International Traffic in Arms Regulations (ITAR), which govern the export and trade of defense-related technologies.
Goldman Sachs Group Inc (GS) and Morgan Stanley (MS) are the lead underwriters on the offering. Anthropic did not respond to Stocktwits’ request to comment.
On Stocktwits, retail sentiment around ANT stock, expected to list next week, trended in ‘extremely bullish’ territory over the past day.
US Defense Rules
Although Anthropic’s listing prospectus did not explicitly detail selling restrictions for mainland China and Hong Kong, China appears alongside nations such as Iran and North Korea on U.S. defense-trade control lists.
The Claude developer also noted in its filing that escalating U.S.-China tensions and federal scrutiny over exposure to Chinese state actors pose material risks to its business.
The exclusion mirrors the playbook used during Elon Musk’s $86.2 billion SpaceX (SPCX) IPO earlier this year, when syndicate banks were instructed to bar orders from mainland China and Hong Kong under ITAR rules.
Investors Pursue Offshore Workarounds
Despite the barriers, strong appetite for the artificial intelligence giant has pushed some regional investors to explore alternative avenues into the offering.
A family office tied to a Chinese technology founder has submitted an order using a trust registered in the British Virgin Islands, though it remains uncertain whether the bid will succeed, Bloomberg reported.
Hong Kong-based institutions may still attempt to bid through offshore holding structures, though final allocation decisions rest with Anthropic and are unlikely to be clarified in formal written guidelines, as per sources quoted by Bloomberg.
Surging Demand Ahead of Nasdaq Debut
Anthropic and its co-founders aim to raise up to $90.4 billion through the IPO and a concurrent private placement, targeting a $1.4 trillion valuation. The offering is reportedly scheduled to price November 18 and begin trading November 19 on the Nasdaq Global Select Market under the ticker symbol ANT.
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