Hedge fund manager Bill Ackman announced at the Delivering Alpha conference in NYC that he aims to raise $2 billion in the initial public offering of Pershing Square USA. The IPO will consist of 40 million shares priced at $50 each, with an option for underwriters to purchase up to six million additional shares.
The Pershing Square USA IPO will be a closed-end fund, similar to Ackman’s other investment vehicles. The firm also has a closed-end fund in Europe, which currently trades at a discount to its net asset value.
Originally, the IPO was expected to launch earlier this week, but it was delayed last Friday. Initially, there were reports that Pershing Square was looking to raise as much as $25 billion. However, Ackman later clarified in a letter to strategic partners that he was aiming for a more modest $2.5 billion to $4 billion. The letter was disclosed in a filing by Pershing Square, which officially disclaimed its contents.
In an unexpected turn, Bloomberg News reported that Seth Klarman’s Baupost Group has decided not to invest in the new fund. This decision could have implications for the fundraising efforts of Pershing Square USA.
Overall, the IPO of Pershing Square USA has generated significant interest and attention within the financial community. Investors will be closely watching to see how the fund performs and whether it can meet Ackman’s fundraising goals.
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