Investment guru Bill Ackman has kicked off marketing for the potential $10 billion IPO of new fund Pershing Square USA and hedge fund firm Pershing Square Capital Management in New York.
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Pershing Pricing This Month
The IPO of the Pershing Square closed-end fund is expected, according to a Bloomberg report, to price on April 28 with between $5 billion and $10 billion likely to be raised in the move.
Under the dual listing structure, Pershing Square’s common shares and the shares of its closed-end fund, Pershing Square USA, will both trade on the NYSE. The securities will trade separately.
Investors would also get stakes in the Pershing hedge fund, according to filings with the U.S. Securities and Exchange Commission. Indeed, for every 100 shares of the closed-end fund IPO bought by an investor, they will receive 20 shares in the management company.
Part of the funds in Pershing Square USA’s IPO will be raised from a private placement, with $2.8 billion secured from qualified investors including family offices, pension funds and insurance companies, the filings reveal.
Iran War Can Help
According to Bloomberg, after the IPOs, an investment vehicle controlled by Pershing Square CEO Ackman, Chief Investment Officer Ryan Israel and other executives, is expected to have voting power over Pershing Square. The offering is being led by major banks such as Citigroup (C), UBS Group (UBS) and Bank of America (BAC). The closed-end fund will be listed on the New York Stock Exchange under the symbol PSUS while the hedge fund manager will trade under the ticker PS.
Ackman has tried to list Pershing Square before back in 2024. That time he reportedly was looking to raise as much as $25 billion before changing strategy.
The marketing comes despite continued disruption from the U.S. and Iran war which has created huge political, economic and global security uncertainty.
Last month, however, Ackman said that the greater the stock market disruption the better for Pershing Square’s acquisition program.
Pershing Square USA, which will invest in 12 to 15 undervalued North American-listed companies, is expected to ape Ackman’s existing hedge fund but offer lower fees and quicker access to capital. This should boost its appeal to a wide pool of investors.
What Other IPOs are on the Way?
Let’s look at other IPOs on the way with our TipRanks IPO Calendar.
