OpenAI and Anthropic Could Both Go Public by Year-End. These ETFs Let You Own Them Today.
OpenAI and Anthropic both recently filed confidential S-1s with the SEC.
OpenAI and Anthropic Could Both Go Public by Year-End. These ETFs Let You Own Them Today.
Overview
As OpenAI and Anthropic prepare to transition from the two most valuable private companies in the world to publicly traded stocks, excitement is building among growth investors. Both artificial intelligence (AI) companies have filed confidential S-1 registration statements with the Securities and Exchange Commission (SEC), paving the way for potential initial public offerings (IPOs) by the end of the year.
Unfortunately, the IPO process often excludes everyday investors. Instead, companies work with investment banks to prepare the S-1, which details the business model, historical financials, operational risks, and governance structure. A roadshow then follows, during which executives pitch the investment thesis to large institutional buyers.
Details
Book building is the phase during which underwriters collect indications of demand from hedge funds, mutual funds, endowments, and other accredited investors to set the final offering price. For this reason, retail investors rarely receive allocations at the IPO price, because they lack the relationships or financial scale that banks prioritize.
Source
Originally published at www.fool.com.
