Pershing Square USA Debuts on NYSE After $5B IPO

Billionaire investor Bill Ackman celebrated the New York Stock Exchange debut of his new closed-end fund, Pershing Square USA, on Wednesday, after raising $5 billion in an initial public offering that marked the largest such fund launch in U.S. history.

Trading began in the early afternoon under the ticker symbol PSUS, with shares falling more than 15 percent from their $50 offering price. A separate entity, Pershing Square Inc., the parent management company, also started trading. Ackman, accompanied by his wife Neri Oxman and company employees, marked the occasion at the exchange. The offering, which combined an IPO with a private placement, drew demand that exceeded available shares, with institutional investors including family offices, pension funds and insurance companies accounting for over 85 percent of orders.

The $5 billion total came in at the low end of the fund's targeted range, according to a securities filing. Investors received one share of Pershing Square Inc. for every five shares of Pershing Square USA purchased, a sweetener that helped secure commitments, including $2.8 billion from private placement participants who got a slightly richer ratio of 1.5 parent...