Bill Ackman's blank check company raises $4 billion in biggest U.S. SPAC IPO

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The SPAC said on Wednesday it sold 200 million units at $20 each and also entered a forward purchase agreement with Pershing Square Funds for a minimum of $1 billion units, each comprising one Class A share and one-third of one redeemable warrant, at a price of $20 per unit.

The forward purchaser, including three funds owned by Pershing Square Capital Management, has the right to buy up to an additional $2 billion units, the SPAC said.

A SPAC uses IPO proceeds to acquire a company, typically within two years. Investors are not notified in advance of the company a SPAC will buy.

Pershing Square Tontine Holdings (PSTH) said in a regulatory filing in June that it would seek to acquire a venture capital-backed company, which Ackman called a “mature unicorn” that has chosen to remain private. Ackman’s New York-based hedge fund manages more than $10 billion in assets.

PSTH’s units are expected to trade on the New York Stock Exchange and trade under the ticker symbol “PSTH.U” from Wednesday.