Famous investor William Ackman with his fund Pershing Square and Tontine Holdings, a blank check company, recently increased the size of its initial public offering IPO to $4 billion from the initial $3 billion.
This will go down as one of the largest SPACs in financial history leading to a large amount of interest to what Bill Ackman plans on buying with 4 billion dollars of investors money!
SPAC stocks “Special purpose acquisition companies” are formed to make acquisitions with their IPO money, IPO investors are not notified in advance which business a SPAC will purchase. Ackman how ever hasn’t indicated what he’s going to buy leaving investors excited.
Though he hasn’t detailed the exact industry his primary terms are solid fundamental based businesses that are family operated. Being in the economic situation we are in it wouldn’t come as any surprise if his sights are on restaurant chains. Reason being he made a large investment in Chipotle after the food poising scare back in 2016 completely turning the company around ever since!
Bill Ackmans SPAC stock what we know.
- The SPAC stock ticker will be PSTHU and has not been posted yet so keep your eyes peeled
- William Ackman’s investment style as an active fund manager, makes SPACs suitable for Pershing
- Ackman’s Fund Pershing Square holdings had success in previous SPACs
- Investors have growing interest in SPACs making this IPO great timing.
- The SPAC’s size will
Pershing Square seeks large businesses with the ability to offer IPOs to private companies worth more than $10 billion and William Quotes “family owned businesses”. Ackman’s SPAC stock could raise more then $7 billion, including contributions of $1 billion to $3 billion from Pershing Square Holdings.
When your buying SPAC stocks your really just buying a management team and if Bill Ackmans past performance resembles any future to this SPAC it may be of interest to add to your watch list when it IPOs.
Pershing’s June filing About SPAC Stock PSTHU
“We intend to pursue merger opportunities with private, large capitalization, high-quality, growth companies where our ownership in the merged company would generally represent a minority of shares outstanding at the time of the merger,”
With the recent shock to the market investor are looking for more liquidity and companies need quick access to capital through SPACs.
SPAC stocks are a public company that raises money with the intent to acquire, or otherwise combine with a yet to be determined private company. If no transaction occurs within two years investors get their money back.
SPAC Stocks Are Risky But This Could Be Interesting To Investors
Most people will not own a SPAC stock pre acquisition because they cannot be reliably valued and companies tend to get over paid for at auction. How ever getting to understand this SPAC company is both interesting and may make for a potential investment once a transaction is announced.