'Buffett Dream' Bill Ackman IPO, 1.7 Trillion Won Vanishes in a Day

On the previous trading day in New York, Pershing Square Inc. (PS) shares closed at $34.15, plunging 10.11% from the prior session. Volume was about 1.38 million shares, and market capitalization shrank to roughly $13.6 billion (around ₩18 trillion), erasing approximately $1.2 billion (₩1.7 trillion) in a single day.

Pershing Square made its simultaneous New York debut on April 29 via a $5 billion combined IPO that paired its closed-end fund, Pershing Square USA (PSUS), with its management holding company. PSUS slumped more than 10% below its offering price, a lackluster start that Bill Ackman tried to counteract by buying shares himself. Despite his intervention, PSUS remains under its IPO level, and PS has been on a roller-coaster ride of high volatility since listing.

Pershing Square is the parent of Ackman’s hedge-fund manager, Pershing Square Capital Management, and operates as an alternative-asset platform earning fees from London-listed Pershing Square Holdings and U.S.-listed PSUS. Ackman—renowned as an activist investor for successful stakes in Chipotle, Lowe’s and Hilton as well as high-profile, controversial bets on Herbalife and Valeant—is pitching this IPO as the launch of a “long-term diversified holding company in the mold of Warren Buffett.”