Robinhood Pushes for Bigger Retail Share of Anthropic IPO as Allocations Grow

Robinhood Chief Financial Officer Shiv Verma is advocating for retail investors to receive larger portions of initial public offerings (IPOs), with the brokerage set to participate in the Anthropic IPO. While Robinhood doesn't determine the allocation split—issuers and their banks make that final decision—Verma is actively pushing for increased retail access to IPO shares at the offer price.

Growing Retail Demand

Anthropic has reported third-quarter revenue of $16.8 billion, nearly 12 times the previous year's figure, according to Bloomberg. The company's amended SEC filing also shows about $895 billion in committed spending. Robinhood is competing with other retail brokerages for access to this offering, while some investors await Anthropic's IPO pricing before potentially backing OpenAI, which recently reduced its funding target by $10 billion.

Historical Shift

Historically, retail investors received only 1% to 5% of IPO allocations, but Verma noted companies are now considering offering 10% or 20% to retail. He pointed to retail's approximately 25% share of the equities market as justification for larger allocations. SpaceX previously sought 15% to 20% for retail investors, while Robinhood's own 2021 IPO allocated 20% to 35% of shares to customers.

Potential Risks

Robinhood cannot take orders until the offering opens, and regulatory quiet periods limit what Verma can disclose. Instead, he points to increased customer deposits and trading activity as positive signs. However, larger allocations carry risks—SpaceX's stock fell 20% from its peak within a week of its June listing. If issuers continue increasing retail quotas, brokerages could gain influence traditionally held by banks, though weak post-listing returns might undermine this argument.