Billionaire Bill Ackman's blank-check company pops 9% in its trading debut - Business Insider

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Billionaire Bill Ackman's blank-check company pops 9% in its trading debut

. He also committed to put up to $3 billion of his firm's own funds into the SPAC, potentially bringing the company's total value to $7 billion.

Now that the SPAC is public, its goal is to merge with a private company to take it public. Ackman has been down this road before — his fund Pershing Square Capital in 2011 helped Justice Holdings raise $1.4 billion, which it used the next year to merge with Burger King Worldwide and take it public.

A previous regulatory filing for the fund said that it will focus on pursuing merger opportunities with private, large capitalization, high-quality, growth companies, or so-called "mature unicorns." Going public through a SPAC is increasing in popularity amid market volatility this year due to the coronavirus pandemic. So far in 2020, 47 SPACs have held IPOs, raising gross proceeds of $18.3 billion, according toGet your daily markets analysis with our Markets newsletter. Sign up now.

 

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I love how a company with no concrete plan or income stream can climb 9% on speculation alone. Speaks to a true bubble in risk assets.

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