Symbolic imageAI stocks rebound as Meta raises equity and Anthropic files for IPO
Meta's equity sale, with $3bn from Nvidia, was reportedly five times oversubscribed. Asian and US stocks rose after Anthropic's IPO filing.
Meta announced on Monday, 26 October, an equity raise of up to $95bn, according to the FT: $35bn in common and mandatory convertible preferred stock plus up to $60bn through an at-the-market programme. Handelsblatt reports an expansion to $97.5bn in total, with the Class A placement lifted from $22.5bn to $25bn. Nvidia takes $3bn of it and deepens its work with Meta on Muse and the underlying AI models. Bloomberg's headline says the $25bn sale ended five times oversubscribed.
Asian and US shares climb
Anthropic also filed its IPO registration statement on Monday, and the FT says the offering could raise up to $100bn. Asian markets rose on Tuesday, with Advantest up 10% and SoftBank almost 7%. A Daiwa Securities strategist described relief, while an Ameriprise strategist said investors need confidence that heavy spending reflects lasting business needs.
Why Meta moved alongside Anthropic
An FT commentary by a former equity capital markets head at Bank of America argues Meta wants to stay in investors' minds while they free up cash for Anthropic, possibly by selling other AI holdings. It says AI build-out needs exceed big tech's free cash flow.
Fed decision next
Handelsblatt says attention now turns to Wednesday's Fed decision. Unchanged rates are seen as likely, while the tone on a possible December hike is open.