Billionaire Bill Ackman‘s Pershing Square is reportedly on the verge of raising $5 billion for his new closed-end ‌fund, Pershing Square USA, which is part of a combined initial public offering.

The fund will trade under the ticker PSUS, with shares priced at $50 each. Pershing Square Inc. will also start trading on Wednesday under the ticker PS. Initially, the company aimed to raise between $5 billion and $10 billion, but later settled on a $5 billion target, according to Reuters.

Investors in the new fund will receive 1 Pershing Square share for every 5 shares they buy in the new fund. 

The offering was oversubscribed, with institutional investors accounting for over 85% of orders, as per the report.

Cornerstone investors are anticipated to provide $2.8 billion of the total $5 billion. Their investments will be locked in for six months, and they will receive 1.5 Pershing Square shares for every ...