Bryan Bedder
Bill Ackman is looking to revive the initial public offering of Pershing Square USA (NYSE:PSUS) by giving early investors more shares, according to a media report.
The hedge fund billionaire withdrew in July filing for an IPO of the U.S. closed-end fund. At the time, he said he’d reevaluate PSUS’s structure.
One option being considered is offering Pershing Square USA investors the right to buy extra shares in the entity in the future at a fixed price through warrants, the Financial Times reported, citing two people familiar with the matter.
A more coveted asset could be the rights to buy into an eventual IPO of Ackman’s Pershing Square Capital Management hedge fund, which manages investments for his existing European fund and his proposed U.S. vehicle, the FT said.
The combination of Pershing Square USA (PSUS) common stock with warrants would resemble the structure of a SPAC, or special purpose acquisition company, where warrants and shares trade as a unit before the IPO, then later trade as separate securities.
The people told the FT that discussions were ongoing and could change. Separately, two people close to the hedge fund told the newspaper that they expected Ackman to bring the IPO to market by the end of the year.
