Billionaire Bill Ackman’s hedge fund management firm Pershing Square USA won’t go public after all. The company withdrew its initial public offering (IPO) just days before it was set to come into effect.
Prior to the announcement, Ackman revised the expected valuation of Pershing Square several times. Initially, Ackman suggested that the IPO could raise $25 billion before slashing down the figure to $10 billion last week. This was followed by two more revisions in the past several days that brought the anticipated valuation to just $2 billion.
However, after several large investors decided to back out due to concerns about the fund structure, Ackman opted to scrap the IPO plans for Pershing Square altogether. He later stated in a post on X (former Twitter) that he intends to re-evaluate the structure based on the feedback received from investors before taking the next step.
“We will report back once we are ready to launch a revised transaction,” Ackman wrote.
Pershing Square’s IPO offering came at a time when close-end funds lost their appeal in the eyes of investors. They usually trade lower compared to the assets they hold, making them a risky investment. However, experts still expect the fund to make another public offering attempt down the line when the circumstances become more favorable.