A stock’s first months on the market often bring heightened activity, and with it elevated borrowing demand. For investors holding newly listed shares, securities lending can provide an opportunity to tap into that demand and generate passive income.
Case study: Pershing Square Inc (PS)
PS is the parent company of Pershing Square Capital Management, L.P., the prominent New York-based investment management firm founded by Bill Ackman, so it’s no surprise that its IPO was keenly watched by investors.
IPO date & price: Listed April 29, 2026, at $24 per share, on the NYSE, as part of a combined IPO with its new closed-end fund, Pershing Square USA (PSUS). Initial PSUS IPO investors received one PS share for every five PSUS shares, at no extra cost.
Market reaction: PS drew strong interest from day one, with Bill Ackman himself buying 800,000 shares. The stock saw early momentum, and has since continued to trade in an elevated but volatile range.
Share value: $55.94, up ~131% as of September 30 (Exchange Data International).
But the price is only half of it.
While some investors benefited from the stock’s appreciation, others also earned additional income by lending out their shares through securities lending programs, at an average annualised lending rate of 78% over the five-month period (Sharegain data).
What that could mean for a $10K position
Suppose you had bought $10,000 of PS on its first day of trading and continuously lent out the shares since.
+40% on top of share price performance in 5 months, from shares you were holding anyway.
Why consider securities lending?
For investors who believe in a stock for the long term, the volatility around a new listing can be an opportunity to generate additional income with securities lending. As always, it’s worth understanding how lending works, including the risks, and making sure it suits your goals.
Past performance is not indicative of future results. This material is provided for informational purposes only and is not investment advice, a recommendation, or an offer or solicitation to buy or sell any security or to enter into any securities lending transaction. The figures shown are illustrative. They assume $10,000 invested in the security shown (29 April 2026 to 30 September 2026) – held and lent for the entire period. Lending income is shown gross, before fee splits, and is subject to individual tax treatment. This is a case study and is not representative of all lendable securities, of any portfolio, or of typical or expected results, and is not a forecast. Share prices can fall as well as rise. Securities lending rates and borrowing demand fluctuate. This case study is based on Sharegain’s proprietary lending data, which may incorporate information from third-party securities financing data providers.
