Billionaire Bill Ackman lifts acquisition company's IPO target to record $4 billion

The SPAC now aims to go public with 200 million units priced at $20 each. The new target should set a fresh record for SPAC IPO proceeds.
Ackman hasn't yet revealed which company he aims to buy following the offering, but his firm has revealed interest in"high-quality, venture-backed businesses" otherwise deemed "mature unicorns."
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Pershing Square Tontine Holdings, the blank-check acquisition company led by hedge fund billionaire Bill Ackman, raised its initial public offering target to $4 billion from $3 billion, according to a Monday regulatory filing .

The special purpose acquisition company, or SPAC, plans to go public with 200 million units at $2o each. Ackman previously planned to sell 150 million units at the same price. If the target is met, Pershing Square will set a new record for SPAC IPOs.

Such blank-check companies use funds raised from IPOs and other sources to acquire other companies. Pershing Square previously backed a $1.44 billion SPAC acquisition of Burger King in 2012. The restaurant chain returned to public markets soon after and later merged with Tim Hortons.

The hedge fund manager hasn't yet revealed which company he will target, only saying in the filing that Pershing Square is interested in "high-quality, venture-backed businesses" deemed "mature unicorns." Ackman also plans to contribute between $1 billion and $3 billion to the SPAC through his fund.

Ackman's SPAC arrives as the companies enjoy surging popularity. The first half of 2020 saw 39 SPAC IPOs emerge and collectively raise $12.3 billion, according to SPACInsider, a website that tracks data on the offerings. The year-to-date fundraising has nearly eclipsed the total seen in all of 2019, when 58 SPAC IPOs brought in $13.6 billion.

Some of the past year's most exciting acquisitions involved SPACs. 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 trading debut in early March through a reverse SPAC merger. Virgin Galactic potentially sparked the trend, taking on a $1.5 billion valuation in July 2019 and completing its merger in October.

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