April 27 (Reuters) – The U.S. initial public offering of Bill Ackman’s investment management company and a closed-end fund is expected to raise about $5 billion, a source familiar with the matter told Reuters on Monday.
The offering of the Pershing Square USA fund, whose investors will receive shares in Pershing Square, is “oversubscribed” and has over 85% institutional interest, the source said.
A Pershing Square representative declined to comment.
The fund was expecting to raise between $5 billion and $10 billion from the IPO and a private placement, selling shares at $50 apiece.
Pershing has said investors in the new fund will receive 1 share in Pershing Square for every 5 shares purchased in the new fund as a sweetener.
The fund has secured $2.8 billion in commitments in a private placement from investors including family offices, pension funds, and insurance companies. They will receive 1.5 shares in Pershing Square for every 5 shares purchased in the new fund.
The offering is expected to price on Tuesday. Bloomberg News was first to report the news.
(Reporting by Svea Herbst-Bayliss in New York and Utkarsh Shetti in Bengaluru; Editing by Shailesh Kuber)
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