Hedge fund manager Bill Ackman / Facebook
Has Bill Ackman canceled plans for an initial public offering for his Pershing Square USA? Reports indicated that he had already done so, but, Pershing Square issued a statement saying that the IPO was still moving forward. However, even if it should move ahead the hopes for the IPO have been greatly reduced from $25 at one time to no more than $4 billion now.
A notice on the New York Stock Exchange’s website said that the Pershing Square USA IPO status is “Pending on a Date to be Announced.”
Bill Ackman recently told investors that he was concerned the IPO would bring in less than was hoped and this is said to be the reason for the delay.
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The Pershing Square Capitol chief sent a letter to investors on July 24 saying, “There is enormous sensitivity to the size of the transaction. Particularly in light of the novelty of the structure and closed end funds’ very negative trading history, it requires a significant leap of faith and ultimately careful analysis and judgment for investors to recognize that this closed end company will trade at a premium after the IPO when very few in history have done so.”
“We believe that the most important factor for creating long-term value for Pershing Square Inc is not the size of the PSUS IPO, but how it trades in the market,” added Ackman. “This transaction is therefore all about a successful IPO from the first day and successful trading at a premium thereafter.”
Pershing Square USA is a newly formed, closed-end investment management company. It’s the brainchild of renowned investor Bill Ackman and his firm, Pershing Square Capital Management.
“To clarify press reports,” read the statement, “Pershing Square USA. Ltd. is proceeding with its initial public offering (the “IPO”) of its common shares of beneficial interest (the “Common Shares”) with the date of pricing to be announced.”
Pershing Square said the IPO price will be $50.00 per Common Share. PSUS has applied to list the Common Shares on the New York Stock Exchange under the symbol “PSUS.” PSUS intends to invest the net proceeds of the IPO in accordance with its investment objective and policies.
Bill Ackman is the founder and CEO of Pershing Square Capital Management, a hedge fund management company with over $16 billion in assets under management. He is known for his activist investing approach, which involves taking large stakes in companies and pushing for changes in their management or strategies.
Ackman is a graduate of Harvard University, earning both his bachelor’s and MBA degrees from the prestigious institution and has an estimated net worth of about $4 billion. Bill Ackman has also been involved in philanthropy and social activism. He has donated to various causes and recently become more vocal about combating anti-Semitism.
