April 13 (Reuters) – Bill Ackman’s Pershing Square kicked off a roadshow for the U.S. initial public offerings of the billionaire investor’s management company and a new fund on Monday.
The roadshow launch comes amid a choppy market after weekend talks between the U.S. and Iran failed to deliver a deal to end the war that is now in its seventh week.
The new fund, Pershing Square USA, expects to raise between $5 billion and $10 billion from the IPO and a private placement. The fund is selling shares at $50 apiece.
It has secured $2.8 billion in commitments in a private placement from investors including family offices, pension funds and insurance companies. The investors will receive 30 shares in Pershing Square for every 100 shares purchased in the new fund.
Ackman previously tried taking the new fund public in 2024, but scrapped the launch https://www.reuters.com/markets/us/ackmans-pershing-square-usa-withdraws-us-ipo-2024-07-31/ days before the scheduled debut following a series of hurdles.
The billionaire investor founded hedge fund Pershing Square Capital Management in 2004. It invests in roughly a dozen stocks – such as Amazon and Uber – and is best known for its activist campaigns.
Pershing Square USA is expected to mimic Ackman’s existing hedge fund and will invest in 12 to 15 undervalued North American-listed companies. The fund will offer quicker access to capital and not charge performance fees to boost its appeal to a wide pool of investors.
Pershing Square USA will be listed on the New York Stock Exchange under the symbol “PSUS”, and Pershing Square under “PS”.
“A large and successful PSUS IPO will also likely contribute to our success in launching other closed-end investment companies,” Ackman had said in a letter last month to Pershing investors announcing the combined IPO.
Citigroup, UBS Investment Bank, BofA Securities, Jefferies and Wells Fargo Securities are the global coordinators and bookrunners for the combined IPO.
(Reporting by Pritam Biswas and Arasu Kannagi Basil in Bengaluru; Editing by Shinjini Ganguli)
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