Pershing Square USA IPO Plunges 18% After $5B Raise vs $10B Target
PSUS•Pershing Square USA's IPO opened at $50 but closed at $40.93, an 18% first-day decline. The fund raised $5 billion against a $10 billion expectation, ranking among the 10 largest U.S. IPOs of the past decade despite lower investor demand.
1. IPO Performance
Pershing Square USA launched at $50 per share and closed its first trading day at $40.93, reflecting an 18% decline as retail investors exhibited caution. This underperformance contrasts with the average first-day IPO gain of roughly 18.8% since 1980.
2. Capital Raised vs Expectations
The fund secured $5 billion from institutional investors, falling short of the $10 billion high-end target and well below the $25 billion ambition for a similar deal in 2024. Despite the shortfall, the $5 billion placement ranks among the ten largest U.S. IPOs over the past decade.
3. Investor Engagement and Advisor Response
Bill Ackman has pledged Berkshire-style annual meetings and investor days to boost shareholder engagement. After the selloff, he purchased 500,000 PSUS shares and 800,000 Pershing Square shares, noting a substantial discount to the fund’s $49 cash-per-share value.
