Bill Ackman Hits Pause On Pershing Square IPO After Investors Hesitate

Bill Ackman's Pershing Square USA has withdrawn plans for an initial public offering (IPO).

What Happened: Investor demand appeared to wane from initial expectations.

Ackman acknowledged that a key concern was whether investors would be better off waiting to invest in the aftermarket rather than during the IPO. This led to a decision to reevaluate the IPO’s structure, with plans to return with a revised proposal according to CNBC.

"While we have received enormous investor interest in PSUS, one principal question has remained: Would investors be better served waiting to invest in the aftermarket than in the IPO? This question has inspired us to reevaluate PSUS's structure to make the IPO investment decision a straightforward one,” Ackman said in a statement. “We will report back once we are ready to launch a revised transaction."

The withdrawal comes shortly after the fund announced plans to raise $2 billion — a significant reduction from the earlier speculated $25 billion. A notice on the New York Stock Exchange's website last Friday indicated a delay in the IPO.

Pershing Square's Current Position

As of the end of June, Pershing Square managed $18.7 billion in assets, primarily through Pershing Square Holdings, a closed-end fund that trades in Europe. Ackman's strategy to list publicly was partly driven by his increasing influence among retail investors, bolstered by his active presence on social media platform X, where he has over 1 million followers and shares his views on various topics, including the U.S. presidential election and antisemitism.

Notably, Seth Klarman's Baupost Group decided against investing in Ackman's new U.S. fund.

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Image created using Photo by Center for Jewish History, NYC via Wikimedia Commons and Shutterstock.