Prominent investor Ackman's Pershing Square is seeking to raise up to $10 billion through an IPO.

Billionaire Bill Ackman is returning to the IPO market with his hedge fund management company and a new closed-end fund, as part of his long-term strategy to expand his asset management empire to public market investors. Documents submitted to the U.S. Securities and Exchange Commission show that the initial public offering of the closed-end fund Pershing Square USA Ltd. will also give investors shares in the alternative asset management company Pershing Square Inc. Investors will receive 20 shares of the asset management company for every 100 shares they subscribe to the IPO shares of the closed-end fund. Ackman plans to raise $5 billion to $10 billion for Pershing Square USA through the transaction, and investors who subscribe to the closed-end fund shares at $50 per share will receive shares of the asset management company for free.