Bill Ackman’s Pershing Square files for IPO
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The news: Pershing Square, the hedge fund of billionaire Bill Ackman, is planning to make its public debut on the New York Stock Exchange in a USS10 billion ($14.05 billion) US initial public offering, according to a filing published on Tuesday.
The context: Pershing Square USA (PSUS), a closed-end investment company managed by Pershing Square Capital Management filed for an IPO with the US Securities and Exchange Commission, seeking to raise between USD5 billion and USD10 billion in the combined transaction.
The figure would comprise a USD2.8 billion in gross commitments from a private placement that will be settled in tandem with the IPO and between USD2.2 billion and USD7.2 billion, respectively, in the IPO.
PSUS did not disclose the number of shares it will offer, but said it will sell shares for USD50 each, with buyers required to purchase at least 100 common shares in order to participate.
Those who buy stock in the new closed-end fund will also receive shares in Ackman’s hedge fund management company, which makes the investment decisions and garners the fees. Every 100 shares in PSUS entitles stockholders to 20 shares in the management company.
Similarly, the company said it will deliver to each private placement investor in the PSUS Private Placement, for no additional consideration, 30 shares of common stock for every 100 PSUS shares purchased in the PSUS Private Placement.
Citigroup Global Markets, UBS Securities, BofA Securities, Jefferies and Wells Fargo are acting as global coordinators and bookrunners for the IPO.
The source: SEC Filing
