Overview
- Pershing Square USA, the new closed-end fund, fell on Wednesday to $40.93, closing 18% below its $50 IPO price after opening at $42.
- Shares of Pershing Square Inc, the management company, slipped about 6% to the low $22 range after opening near $25.
- The offering raised $5 billion through a combined IPO and private placement, created two NYSE tickers (PSUS and PS), and gave IPO buyers one PS share for every five PSUS shares.
- Pershing Square USA forgoes performance fees, charges a flat management fee, and targets a concentrated portfolio of 12 to 15 large-cap stocks listed in North America.
- Institutional buyers accounted for more than 85% of orders in what analysts call the largest U.S. closed-end fund IPO, a market test for vehicles that can trade away from the value of their holdings.