Closely followed investor Bill Ackman aims to raise $5 billion from the upcoming initial public offering (IPO) of his investment management company Pershing Square.
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The U.S. IPO of Ackman’s investment management company and a closed-end fund is oversubscribed and has over 85% institutional interest, according to media reports. The offering of the Pershing Square USA fund will see investors receive shares in Pershing Square,
The fund was expecting to raise between $5 billion and $10 billion from the IPO and a private placement, selling shares at $50 apiece. However, it now looks like the IPO will raise money at he low-end of Wall Street’s expectations.
Details of the Upcoming IPO
Ackman has said in interviews that investors in his fund will receive one share in Pershing Square for every five shares they purchase in the new fund. So far, the Pershing Square USA fund has secured $2.8 billion in commitments in a private placement from investors that include family offices, pension funds, and insurance companies.
Those investors will receive 1.5 shares in Pershing Square for every five shares purchased in the new fund. The offering is expected to price on April 28, according to media reports. Ackman has said that he eventually wants to establish Pershing Square as a holding company similar to Berkshire Hathaway (BRK.B).
Is BRK.B Stock a Buy?
Only a couple of analysts currently offer a rating and price target on Berkshire Hathaway’s more affordable Class B stock. So instead, we’ll look at the shares’ three-month performance. As one can see in the chart below, shares of BRK.B have declined 2.56% over the past 12 months.
