Ackman Spends $40M on 500k Pershing Square USA Shares at 18% Discount
Bill Ackman purchased 500,000 Pershing Square USA shares and 800,000 management company shares at a VWAP, spending roughly $40 million on Wednesday’s trading debut. Pershing Square USA closed $40.90 per share, trading 18% below its $49 cash-per-share NAV and prompting a 4.6% intraday rally.
1. Ackman Purchases Shares
Bill Ackman acquired 500,000 Pershing Square USA shares and 800,000 shares of the management company in the open market during the debut trading session, using volume-weighted average prices to invest approximately $40 million in total.
2. Share Price Movements
On Wednesday Pershing Square USA closed at $40.90 per share—18% below its IPO price—and subsequently rose as much as 4.6% intraday on Thursday, while the management company’s shares climbed up to 16% after closing near $24.20.
3. IPO Fundraising Outcome
The combined listing generated $5 billion, meeting the minimum threshold but falling short of the $10 billion target and the previously sought $25 billion, sufficient only to satisfy early private placement investors.
4. Closed-End Fund Structuring
Pershing Square USA’s structure features no performance fees and offers one free management company share for every five fund shares purchased, aiming to reduce the typical discount to net asset value and avoid the European vehicle’s 30% discount, US ownership caps, and adverse tax treatment.