Verma Says Retail Deserves More Than a Sliver of the Anthropic IPO

Robinhood's chief financial officer, Shiv Verma, wants retail investors to get bigger portions of initial public offerings (IPOs). The brokerage intends to take part in the Anthropic IPO, he said.

The split, though, is not Robinhood's to set. It falls to issuers and their banks. That percentage decides how many customers obtain shares at the offer price rather than paying the open market.

Why Companies Are Now Asking How Far Retail Participation Can Stretch

Bloomberg reported that Anthropic told investors third-quarter revenue reached $16.8 billion, almost 12 times the figure a year earlier. About $895 billion in committed spending also appears in its amended filing with the Securities and Exchange Commission (SEC).

Robinhood is vying with rival retail brokerages for a place in that offering and in later listings.

At the same time, some investors are holding off on backing OpenAI — which cut its funding target by $10 billion — until Anthropic IPO pricing emerges.

Verma told Bloomberg Businessweek Daily on Monday that retail historically received just 1% to 5% of IPOs. These days, he said, companies ask whether 10% or 20% is possible.

His argument for bigger allocations rests on retail's roughly 25% share of the equities market.

Verma noted that SpaceX said it wanted 15% to 20% set aside for retail. Axios reported, though, that Robinhood's own 2021 IPO earmarked 20% to 35% of shares for customers.

Verma said Robinhood passes customer demand along to issuers and banks and makes the case for retail.

“We are making sure companies know that retail is here.”

Shiv Verma, Chief Financial Officer, Robinhood, on Bloomberg Businessweek Daily

Can Customer Demand Secure a Bigger Slice of the Anthropic IPO?

Until an offering opens, Robinhood cannot take orders, and a regulatory quiet period ahead of listings caps what Verma is able to disclose.

He pointed instead to customer activity, describing heavier deposits and trading as a good sign.

Bigger allocations bring exposure as well. SpaceX’s post-IPO slide wiped 20% off its peak within a week of its June listing.

So if issuers keep lifting retail quotas, brokerages could acquire influence that banks once largely held. Poor returns after listing, however, might weaken that argument.