- Bill Ackman’s special-purpose acquisition company Pershing Square Tontine Holdings raised its IPO target to $ 4 billion from $ 3 billion, according to a regulatory filing Monday.
- SPAC now aims to go public with 200 million units at a price of $ 20 each. The new goal should set a new record for SPAC IPO revenue.
- Ackman has yet to reveal which company he intends to buy after the offering, but his firm has revealed interest in “high-quality business-backed businesses” that would otherwise be considered “mature unicorns.”
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Pershing Square Tontine Holdings, the hedge fund acquisition company run by hedge fund billionaire Bill Ackman, raised its initial public offering target to $ 4 billion from $ 3 billion, according to a regulatory filing Monday.
The special-purpose acquisition company, or SPAC, plans to go public with 200 million units at $ 2 each. Ackman previously planned to sell 150 million units at the same price. If the goal is met, Pershing Square will set a new record for SPAC OPCs.
Such blank check companies use funds raised from OPI and other sources to acquire other companies. Pershing Square previously supported a $ 1.44 billion acquisition of Burger King from SPAC in 2012. The restaurant chain returned to public markets shortly thereafter and then merged with Tim Hortons.
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The hedge fund manager has yet to reveal which company he will target, he only said in the presentation that Pershing Square is interested in “high-quality business-backed businesses” considered “mature unicorns.” Ackman also plans to contribute between $ 1 billion and $ 3 billion to SPAC through his fund.
Ackman’s SPAC comes when companies enjoy increasing popularity. The first half of 2020 saw 39 SPAC IPOs emerge and collectively raise $ 12.3 billion, according to SPACInsider, a website that tracks bidding data. Fundraising to date has almost eclipsed the total seen in all of 2019, when 58 SPAC OPCs generated $ 13.6 billion.
Some of the most exciting acquisitions from last year involved SPAC. The sports betting platform DraftKings went public in December 2019 after completing a triple merger with Diamond Eagle Acquisition and SBTech. Electric truck maker Nikola Corp. made its commercial debut in early March through a SPAC reverse merger. Virgin Galactic potentially triggered the trend, assumed a valuation of $ 1.5 billion in July 2019, and completed its merger in October.
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