Bill Ackman’s Pershing Square withdraws IPO as demand for offering waned

Bill Ackman’s Pershing Square USA withdrew plans for an initial public offering after investor demand appeared to wane from original expectations.

But the hedge fund titan said he would be back with a revised plan for the offering for his fund, which he had wanted to model after Berkshire Hathaway.

Ackman wrote in a statement:

The withdrawal comes a day after the fund said it would be seeking to raise $2 billion, far below the possible $25 billion cited in previous reports. The announcement also comes on the back of a notice on the New York Stock Exchange’s website last Friday, which showed the billionaire investor was delaying his IPO.

Pershing Square had $18.7 billion in assets under management as of the end of June. Most of the money was under Pershing Square Holdings, a closed-end fund that trades in Europe.

On Monday, Bloomberg News reported citing sources that Seth Klarman’s Boston-based hedge fund Baupost Group opted against investing in Ackman’s new U.S. fund.

Ackman’s move to publicly list Pershing Square was seen as a way to capitalize on his growing presence among retail investors. Currently, he has more than 1 million followers on social media platform X. On the platform, he has expressed his views from the U.S. presidential election to antisemitism.