Bill Ackman’s Closed-End Fund Sinks 18% After $5 Billion IPO

Shares of Bill Ackman’s Pershing Square USA Ltd. plunged 18% in its debut after the combined initial public offering for the closed-end fund and his alternative asset manager raised $5 billion.

Pershing Square USA closed at $40.90 per share on Wednesday, below the $50 price, while shares of the asset manager Pershing Square Inc. ended at $24.20, nearly 1% above their opening price. An investor who bought five shares in the IPO would be down roughly 9%, when accounting for the stock distributed in the management company, according to Bloomberg calculations.

The $5 billion haul was the bare minimum ...