Bill Ackman, through his blank check company, Pershing Square Tontine Holdings, raised $4 billion, by offering 200 million units at $20. With this, Pershing Square becomes the largest Special Purpose Acquisition Company (SPAC) ever to go public.
Pershing Square Tontine Holding will target IPO candidates with a proven track record of growth, having free cash flow, a strong balance sheet, large capitalization, and an efficient management team.
In connection with the IPO and the committed purchase agreement, Pershing Square will acquire between $1 billion and $3 billion worth of equity units, at a price of $20 per unit. The funds will have the right to buy up to an additional $2 billion worth of equity units. With this, the SPAC expects to have a minimum of $5 billion of cash capital to make an acquisition. This is the second time Pershing Square has sponsored a SPAC.