The initial public offering (IPO) of billionaire investor Bill Ackman’s Pershing Square closed-end fund has been delayed, according to a notice from the New York Stock Exchange (NYSE).
The IPO of Pershing Square USA Ltd., under the ticker symbol “PSUS,” has been delayed until a future date that has yet to be announced.
While Ackman hasn’t commented on the delay publicly, there have been media reports that the IPO has been put off after the deal failed to attract sizable interest from investors.
Ackman had previously said that his target was to raise $25 billion U.S. through the listing of Pershing Square.
A scaled down IPO is now looking to raise $2.5 billion U.S. to $4 billion U.S. for the fund, according to multiple media reports.
However, it is unclear how long the Pershing Square IPO will be delayed as some media outlets are reporting that the deal is likely to price within a week.
Closed-end funds sell a set number of shares during their IPO and they then trade on market exchanges.
The price of a closed-end fund does not necessarily match the shares’ net asset value, so the fund usually trades at either a premium or a discount.
Pershing Square had $18.7 billion U.S. of assets under management at the end of June this year.
The IPO is seen as an attempt by Ackman to leverage his popularity among retail investors and the more than one million followers he has on social media platform X.
After its IPO, the closed-end fund is expected to invest in up to 24 large-cap growth stocks.
Pershing Square’s current stock holdings include Chipotle Mexican Grill (CMG), Restaurant Brands International (QSR), and Canadian Pacific Kansas City (CP).
