Bill Ackman aims to launch Pershing Square fund IPO with $2 billion, below initial targets.

Bill Ackman, hedge fund manager, aims to raise $2 billion through an initial public offering of Pershing Square USA, with 40 million shares priced at $50.

The firm has announced that its underwriters will have the option to purchase up to 6 million additional shares.

The Pershing Square USA IPO will be a closed-end fund, and is predicted to mirror many of the investments in Ackman's other vehicles. Additionally, Pershing Square has a European closed-end fund that trades at a discount to its net asset value.

The initial public offering of Pershing Square was expected to occur early this week but was postponed on Friday. At one point, Pershing Square was aiming to raise as much as $25 billion, as reported by the Wall Street Journal and Bloomberg News. However, Ackman later stated in a letter to strategic partners that he anticipated raising between $2.5 billion and $4 billion. In an unusual situation, Pershing Square USA disclosed the letter in a filing and subsequently disavowed it.

On Monday, it was reported by Bloomberg News that Seth Klarman's Baupost Group has decided not to invest in the new fund.