Pershing Square Holdings Ltd., one of the funds managed by activist investor Bill Ackman, plans to raise about $2-billion from an initial public offering in Amsterdam.
The company will have a market capitalization of at least $5-billion after it lists on the Euronext Amsterdam, Pershing Square Holdings said in a statement today. Thirty so-called cornerstone investors have already committed funds worth $1.5-billion to the sale, and the shares are being priced at $25 apiece, the statement said.
Ackman, who is waging campaigns against management at Herbalife Ltd. and Allergan Inc., has wanted to raise capital since at least 2011 to avoid a repeat of the financial crisis, when investors withdrew about 27 per cent of the New York-based firm's funds.
Pershing Square Holdings was started in December 2012 to invest alongside other funds managed by Ackman's Pershing Square Capital Management LP. More than 300 investors have money in the fund, which had a net asset value of approximately $2.9-billion as of June 30. The parent company, which is not itself going public, and its management will invest $100-million at or around the time of the IPO.
"Because we are an active, control and influence-oriented investor, we have avoided being fully invested because of the risk of investor redemptions," Ackman wrote in an investor letter obtained by Bloomberg News in August. The IPO of the fund will address that as it "will increase the amount of our capital that is permanent," he wrote in the letter.