- Bill Ackman’s blank-check buyout company is set to stop taking investor orders and begin trading on Wednesday.
- The special purpose acquisition company is set to break records for IPOs in its category, with plans to offer 200 million units at $20 each. The $4 billion fundraising goal was raised from $3 billion just last week.
- Each unit consists of one common share and one-ninth of a redeemable warrant. Full warrants allow holders to buy an additional share for $23.
- Though Ackman hasn’t revealed which companies he’s eyeing to take over, previous regulatory filings said he’s looking for “high-quality, venture-backed businesses” and “mature unicorns.”
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Bill Ackman’s special purpose acquisition company – Pershing Square Tontine Holdings – will stop taking investor orders on Tuesday and begin trading on Wednesday, according to recent regulatory filings.
The blank-check acquisition vehicle is set to break records with its initial public offering. The SPAC plans to sell 200 million units at $20 each, raking in up to $4 billion for a future buyout. The sum is up from initial plans to sell 150 million units at the same price. Ackman also committed to pushing up to $3 billion into the SPAC from his own funds, potentially growing the company’s size to $7 billion.
Each unit consists of one common share and one-ninth of a redeemable warrant. Each full warrant allows a holder to buy one share of common stock for $23, according to the filing.
The SPAC will trade on the New York Stock Exchange and is expected to trade with the ticker “PSTH.”
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The hedge fund billionaire hasn’t yet specified to investors which companies he’s eyeing to take over. A previous filing stated Ackman is attracted to “high-quality, venture-backed businesses” that could be classified as “mature unicorns.”
Though Ackman primarily operates in the hedge fund industry, Pershing Square Tontine isn’t his first foray into the SPAC sector. His fund – Pershing Square Capital – helped acquisition company Justice Holdings raise $1.4 billion in 2011. The SPAC merged with Burger King Worldwide the following year and later took the restaurant chain public.
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SPAC activity has been on a tear in 2020. The year has already seen 45 such firms go public and collectively raise more than $14 billion, according to SPACInsider, a website tracking data on the offerings. The investment vehicles raise capital in public markets with the intention of eventually buying a company and taking it public.
Most recently, former Citigroup banker Michael Klein closed the biggest SPAC takeover yet by acquiring healthcare group MultiPlan for $11 billion on July 13. The SPAC used in the deal – Churchill Capital III – is one of four acquisition companies led by Klein.
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