Bill Ackman, whose Pershing Square Holdings is one of the largest shareholders in Universal Music Group (UMG), has significantly lowered its IPO target for its new U.S. closed-end fund price.
Ackman gets a lot of media attention Pershing Square Capital Management (PSCM)—the exclusive investment manager of Pershing Square Holdings—sold 10% June sale of shares to a group of investment funds $1.05 billionestimate PSCM as $10.5 billion.
This reportedly added some to Ackman’s own net worth $4 billion.
It also sparked heated discussions again Pershing Square, USA, Ackman’s new closed-end fund plans to list on the New York Stock Exchange. (His existing fund, PSH, trades on the Amsterdam exchange, like UMG itself.)
Ackman targets IPO price, according to Bloomberg $25 billion For Pershing Square USA, that would make it the most highly priced closed-end fund ever.
Report suggests price may be tied to social media influence Ackerman Growth compared to last year. Ackerman has become a celebrity on X (formerly Twitter) for his posts criticizing the growth of anti-Semitic sentiment in American politics since the Oct. 7 Hamas attack on Israel.
However today (July 30), Pershing Square America, Inc. Confirmation of update filed with the U.S. Securities and Exchange Commission (SEC) Indicates that the company’s total issuance size is $2 billion—— less than one tenth initially expected $25 billion price.
The company expects total issuance to be 40 million The shares are priced at 50 U.S. dollars According to today’s filing, every one.
BloombergAccording to reports, the IPO is expected to price after the New York Stock Exchange closes next week on August 5, and shares will begin trading the next day (August 6).
The expected sharp drawdown surrounding the fund raises some questions about the size of the capital Pershing Square, USA Investments will be made, including potential investments in the music industry.
In an analysis last month, MBW suggestion $25 billion A fund managed by Ackman could be good news for the music industry, and Universal Music Group in particular, as Ackman has been a supporter of both industries, arguing that music is undervalued and Universal Music Group is the industry’s largest. One of the good bets.
In a letter released last Wednesday (July 25), Ackman promoted to the market a reduction in the size of the IPO, saying pershing square Already “remodeled” [its] The transaction was considered after numerous meetings with potential investors in the capital markets sector”.
“All in all, transaction size is very sensitive. Especially given the novelty of the structure and the very negative trading history of closed-end funds, investors would need to take a huge leap of faith and ultimately careful analysis and judgment to recognize this closed-end fund.” Companies will trade at a premium post-IPO as historically few have done,” Ackman wrote.
“this $25 billion Figures in the media initially led investors to think the deal was too big. Ultimately, I hope this ‘anchoring’ will help with the final result.
Ackman added in that letter: “We have committed to limiting supply and potential demand in order to [Pershing Square USA] Shares are trading well in the aftermarket, including the announcement of a hard cap of $10 billion.
Even at the new price point, Pershing Square America’s IPO will be one of the largest IPOs of the year New York Times reported.
“The $25 billion figure in the media initially led investors to think the deal was too big. Ultimately, I hope this ‘anchoring’ will help with the final outcome.
Bill Ackerman, Pershing Square
As of last count, Ackman’s Pershing Square Holdings, the European fund, held some 10.25% Universal Music Group (UMG) becomes its third largest shareholder Tencentled consortium Concerto Partner (approximately 20%) and ex Vivendi President Vincent Bollore (18%).
UMG is an important part of the PSH portfolio and is equivalent to 24.9% net assets, according to the fund’s most recent annual report.
Ackman’s portfolio took a hit last week, with shares of Universal Music Group (UMG) plunging by double digits following a second-quarter earnings report that, while generally strong, showed paid streaming subscription revenue slowed more than expected , advertising support revenue fell.global music business
