Pershing Square Holdco, L.P. (NYSE:PS) is a new investment fund from billionaire investor Bill Ackman. It operates as a closed-end fund and an alternative asset management company. This structure allows it to pool capital from investors to invest in various securities, with its shares trading on a stock exchange like a regular stock.
The company is holding its Initial Public Offering (IPO), marking its stock market debut as a private company first sells shares to the public. PS is offering 33.12 million shares. The anticipated price for each share is set at $50.00, with the fund slated to trade on the New York Stock Exchange.
Through this IPO, PS is expected to raise about $5 billion, as highlighted by Bloomberg News. This amount is at the bottom of its previously targeted range of $5 billion to $10 billion. The offering includes a significant $2.8 billion private placement, which is a sale of stock to select private investors.
Initial reports suggested that demand for the new fund was low, as highlighted by Barron's. However, a source familiar with the matter stated the IPO was oversubscribed, meaning demand exceeded the number of shares available. The offering is reportedly 85% covered by institutional investors like pension funds and endowments.
