Bill Ackman’s IPO targeted retail investors and initially aimed to raise $25 billion. However, it later lowered its target to $4 billion and then $2 billion before deciding to drop it altogether|Senate Democrats|CC BY 2.0
Bill Ackman announced that his firm, Pershing Square USA, is withdrawing its plans for an initial public offering (IPO), citing the need to reconsider its structure.
The move comes after major investor Baupost Group decided not to invest, despite Ackman’s initial claims of their participation. The hedge fund titan stated that investor uncertainty about whether to invest in the IPO or after its launch led to the reevaluation.
Ackman’s IPO targeted retail investors and initially aimed to raise $25 billion. However, it later lowered its target to $4 billion and then $2 billion before deciding to drop it altogether. The IPO would have allowed investors to buy a portfolio of about a dozen stocks.
The Securities and Exchange Commission (SEC) postponed the offering, initially set for Tuesday, because it needed to review a private letter Ackman sent to some investors.
Pershing Square manages $18.7 billion in assets. Ackman promoted the fund as a major market player, saying it would conduct annual meetings like Berkshire Hathaway’s and have a future spot in an index like the S&P 500.
In a regulatory filing, he also said that investor interest in his IPO would come from his “brand-name profile” and “broad retail following,” hinting at his 1.3 million followers on X.
Ackman is a public hedge fund figure who has grown popular recently.
He was one of the first Ivy League university donors who threatened to stop funds due to the college’s response to the Israel-Hamas war and on-campus protests.