Waystar, a provider of software solutions for managing finances in hospitals and doctors’ practices, has successfully completed its initial public offering (IPO), raising $968 million. The IPO involved the sale of 45 million shares priced at $21.50 each, resulting in a fully diluted valuation of $3.69 billion for Waystar.
The pricing of the IPO, which fell within the indicated range, demonstrates the continued openness of the market for new listings. Despite recent events such as aluminum recycler Novelis withdrawing its IPO, citing adverse market conditions, Waystar’s successful offering highlights investor confidence in the healthcare technology sector.
Waystar’s IPO adds to the significant amount of capital raised by companies through IPOs on U.S. exchanges this year, amounting to over $15 billion, a substantial increase from the same period last year.
The major shareholders of Waystar include buyout firm EQT, the Canada Pension Plan Investment Board (CPPIB), and alternative investment firm Bain Capital. Following the IPO, these shareholders will retain ownership stakes of approximately 29.2%, 22.3%, and 16.8%, respectively.
Waystar was established in 2017 through the merger of Navicure and ZirMed. The company specializes in developing payment software to assist healthcare providers, including large hospital systems, in managing bill collections from patients. Despite reporting a net loss of $51.3 million on revenue of $791 million in 2023, Waystar has demonstrated growth potential, particularly through strategic acquisitions and expansion into government health insurance markets.
With its shares expected to trade on the Nasdaq Global Select Market under the symbol “WAY,” Waystar is poised to capitalize on its position as a leading player in healthcare finance management software.
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