Bill Ackman, Pershing Square Capital Management CEO, speaking at the Delivering Alpha conference in NYC on Sept. 28th, 2023.
Adam Jeffery | CNBC
Hedge fund manager Bill Ackman is looking to raise $2 billion in the initial public offering of Pershing Square USA, with 40 million shares priced at $50.
The firm will also give its underwriters the option to purchase up to six million additional shares, according to an announcement from the firm.
The Pershing Square USA IPO will be in the form of a closed-end fund, and is expected to hold many of the same positions as Ackman’s other vehicles. Pershing Square also has a closed-end fund in Europe, which trades at a discount to its net asset value.
The IPO was expected to happen early this week but was delayed on Friday. At one point, Pershing Square was looking to raise as much as $25 billion, according to The Wall Street Journal and Bloomberg News. Ackman then said in a letter to strategic partners last week that he was expecting between $2.5 billion and $4 billion. In an unusual circumstance, Pershing Square then disclosed the letter in a filing and officially disclaimed it.
Bloomberg News reported on Monday that Seth Klarman’s Baupost Group has decided against investing in the new fund.
As the saga of Pershing Square USA’s IPO unfolds, the financial world holds its breath to see if Bill Ackman’s $2 billion target will be met. The ups and downs of the stock market, the decisions of key investors like Baupost Group, and the strategies of Pershing Square Capital Management will all play a role in the final outcome.
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