Overview
- Pershing Square USA, a closed-end fund listed as PSUS, fell from a $50 offer price to about $41 on its first trading day and later traded below the IPO level.
- The combined offering raised about $5 billion, with roughly $2.8 billion from cornerstone investors who agreed to a six-month lockup.
- To entice buyers, participants received one share of Pershing Square Inc. (PS) for every five PSUS shares at no extra cost.
- Ackman said the deal favored retail allocations and that the stocks opened at 1:55 p.m., which left little time to raise cash for next-day settlement and likely spurred late selling.
- After the drop, he disclosed buying 500,000 PSUS shares and 800,000 PS shares, signaling confidence as he argued PSUS traded below its cash per share.