Will be listed next week? Ackman's Pershing Square USA (PSUS.US) plans to price its IPO at $50 per share, raising $2 billion.

Hedge fund giant Bill Ackman's closed-end fund Pershing Square USA (PSUS.US) said on Tuesday that it has filed its latest preliminary prospectus for its initial public offering (IPO), with a proposed offering size of $2 billion. This is a significant decrease from the target of around $25 billion that Ackman had proposed to potential investors in early July, and lower than the fundraising range of $25 billion to $40 billion mentioned in a letter to investors last week. The filing shows that the company expects to issue 40 million shares at a price of $50 per share. The IPO for Pershing Square USA is expected to be priced after market close on August 5. The pricing is subject to the effectiveness of an IPO registration statement by the U.S. Securities and Exchange Commission, with the fund set to be listed on the New York Stock Exchange the following day. The fund's IPO was originally expected to receive regulatory approval earlier in the month, but the SEC delayed approval after Pershing Square USA submitted a regulatory update that included a letter from Ackman to investors on July 24 indicating a reduction in the expected returns from the deal. According to sources cited by Bloomberg News, Seth Klarman's Baupost Group decided not to invest in the fund on Monday night. Ackman had mentioned in his letter to investors last week that Baupost was one of the potential supporters. Ackman stated that Baupost would invest $150 million in the IPO. Pershing Square USA plans to invest the net proceeds from the IPO in accordance with its investment objectives and policies. The company has filed an N-2 registration statement with the SEC relating to common stock, but it has not yet become effective. Citigroup, UBS Group AG, Bank of America Corp Securities, and Jefferies Financial Group Inc. are acting as the global coordinators and bookrunners for this IPO. Wells Fargo & Company Securities, Royal Bank of Canada Capital Markets, BTG Pactual, Barclays PLC Sponsored ADR, and Deutsche Bank Aktiengesellschaft Securities are also acting as bookrunners.