Bill Ackman’s blank check company seeks USD 3bn in IPO

Billionaire investor Bill Ackman’s special purpose acquisition company (SPAC) Pershing Square Tontine Holdings has filed a prospectus with the US Securities and Exchange Commission to raise USD 3.00 billion via an initial public offering (IPO).

Under the terms of the transaction, the group is offering 150.00 million units, comprising one share and one-ninth of one redeemable warrant, at USD 20.00 apiece.

Each transferrable warrant gives the holder the right to buy one common stock at USD 23.00 each.

Pershing Square Tontine is expecting to be listed on the New York Stock Exchange on the 52nd day following the filing, in a deal that will make the company the largest-ever listed SPAC.

Citigroup, Jefferies and UBS Investment Bank have been appointed as underwriters for the share sale and have been granted a 45-day option to purchase up to an additional 22.50 million units to cover overallotments.

Ackman’s blank check company was formed for the purpose of effective a merger, capital stock exchange, asset acquisition, stock purchase or reorganisation for a similar business combination.

However, Pershing Square Tontine is yet to specify what sectors it will be targeting.

The group could fetch a total USD 6.45 billion by raising USD 3.00 billion from outside investors, between USD 1.00 billion and USD 3.00 billion from funds associated with Ackman’s hedge fund Pershing Square Capital Management and if the banks exercise the overallotment option in full.

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In an interview during the Bloomberg Invest Global virtual conference, Ackman said he believes the economy will recover by the end of the year but will not return to normal until the second half of 2021, following the coronavirus pandemic.

He added that if a vaccine is distributable by autumn it would make a huge difference.

The blank check company’s sponsor Pershing Square Capital had assets under management of USD 10.70 billion and USD 9.30 billion of net assets under management as of 9th June 2020.

© Zephus Ltd

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