Bill Ackman's dual IPO of Pershing Square Inc. and Pershing Square USA is slated to raise $5 billion, with the CEO positioning the vehicles as a diversified holding company similar to Berkshire Hathaway

The dual IPO is targeting $5 billion, toward the low end of Ackman's original $5 billion to $10 billion target. Institutional investors are covering 85% of the deal. A private placement has locked in $2.8 billion from family offices and pension funds. Pershing Square USA priced at $50 per share and debuted on the New York Stock Exchange on Wednesday.

The two entities will trade separately under their own tickers. The offering includes one free share of Pershing Square Inc. for every five shares of Pershing Square USA purchased.

Ackman has announced a $900 million deal to purchase a 47% stake in real estate developer Howard Hughes Holdings and an agreement to acquire Vantage Holdings, a specialty insurer and reinsurer. Pershing Square will manage Vantage's assets at no incremental cost, giving the insurer a competitive advantage, Ackman stated.