Billionaire hedge fund manager Bill Ackman has that he was clarifying why his newly listed closed-end funds, Pershing Square USA (PSUS) and Pershing Square Inc. (PS), slid after listing, pointing to how late-day trading mechanics collided with an unusually retail-heavy allocation. The explanation came as investors digested details of a combined IPO targeting $5 billion at $50 a share that included special terms for cornerstone buyers and a dual-ticker debut.
In a post on X, Ackman shared that his team gave retail buyers full allocations while trimming institutional fills, a reversal of the typical pecking order in new issues.
In the same combined offering, the new fund was structured so buyers would receive one Pershing Square Inc. share for every five shares purchased in Pershing Square USA, while cornerstone participants were set to receive 1.5 Pershing Square Inc. shares for every five PSUS shares.
Retail Investors Caught In IPO Timing Trap
The shared reader stake is settlement-driven liquidity risk, because both accounts describe how allocation size and trading timing can force sales that pressure prices.
Ackman said the stocks didn’t open until 1:55 p.m., leaving a narrow window for investors who wound up with more …
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