In a significant shift, Bill Ackman’s Pershing Square USA has decided to withdraw its plans for an initial public offering (IPO) following a noticeable decline in investor demand that fell short of earlier expectations. The hedge fund manager indicated, however, that he intends to return with a revised plan for the offering, which he had aimed to model after the successful structure of Berkshire Hathaway.
The decision to pull back comes just a day after the fund announced its goal of raising $2 billion, a stark contrast to the previously reported target of $25 billion. This announcement was further complicated by a notice from the New York Stock Exchange last Friday, revealing that Ackman had opted to delay the IPO.
As of the end of June, Pershing Square managed $18.7 billion in assets, primarily within Pershing Square Holdings, a closed-end fund traded in Europe. Recent reports from Bloomberg indicated that Baupost Group, a hedge fund led by Seth Klarman, opted not to invest in the IPO. This decision followed Ackman’s earlier claim in a letter to investors that Klarman’s firm would be participating in the offering.
Ackman’s initiative to take Pershing Square public was viewed as a strategic move to harness the growing interest from retail investors, particularly given his substantial following of over one million on social media platform X. On this platform, Ackman has been vocal about various issues, including the upcoming U.S. presidential election and the fight against antisemitism.
Despite this setback, Ackman remains committed to refining his approach and eventually bringing his fund to market, aiming to capture the attention and investment of the public once more.
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