Interactive Brokers Earns Interest on $182 Billion of Its Clients' Idle Cash. Will Anthropic's IPO Drain It?
What does a record-size stock market debut do to a broker that earns interest on its clients' idle cash?
Overview
Interactive Brokers (NASDAQ:IBKR) ended June with $182.4 billion of uninvested client cash, up 27% year over year. Not only did the pile grow, but it was bigger still two months after the quarter closed, reaching $185.6 billion at the end of August. And until clients put that money to work, the automated global broker collects interest on it.
They may soon get a big occasion to put some of it to work. Anthropic's initial public offering (IPO) prospectus could arrive as soon as this week. In late August, The Information reported that the artificial intelligence (AI) company planned to release it just after Labor Day, with a market debut following as soon as the end of this month.
Details
Investors project the Claude maker's valuation could land at about $2 trillion, CNBC has reported. They also expect the offering itself could top the largest on record -- the $85.7 billion SpaceX (NASDAQ:SPCX) raised in its June debut.
Source
Originally published at www.fool.com.