Waystar celebrates its initial public offering on the Nasdaq on June 7, 2024.
CNBC
Waystar shares fell about 3% in their Nasdaq debut Friday, after the health care payment software seller priced its IPO in the middle of the expected range.
The stock opened at $21 a share, below its IPO price of $21.50 late Thursday. Waystar said its expected price will be between $20 and $23 per share in May.
The IPO market has been largely dormant since late 2021 when an extended bull market turned and investors began to worry about the weak economy. Few tech companies have been willing to attempt to go public since then, and none of the digital health companies have a public exit in 2023, according to a report by Rock Health.
But the broader venture-backed technology market may be starting to improve. Social media platform Reddita data center chipset vendor Astera Laboratories Data management software maker rubric They all went public this year. Health technology company Tempus AI also issued a preliminary prospectus this year.
Based on Waystar's initial stock price, the company's market cap is about $3.5 billion. The stock is trading under the ticker symbol “WAY”.
Waystar offers tools for healthcare payment and revenue cycle management and facilitates more than 5 billion payment transactions annually, according to its prospectus. The company was founded in 2017 following the merger of healthcare payment companies Navicure and ZirMed.
“We're excited about the opportunity to become a public company because we believe that helps us with awareness, helps us with credibility, helps us improve our capital structure and allows for more investments in areas like generative artificial intelligence,” Matt Hawkins, Waystar CEO, told The Exchange. On CNBC on Friday.
For the quarter ended March 31, Waystar had revenue of $224.8 million, up 18% from $191.1 million in the same period last year. Waystar reported a net loss of $15.9 million for the quarter compared to $10.6 million a year ago.
The company said it plans to use the funds from the offering to pay off existing debt. C. B. Morgan Chase, Goldman Sachs And Barclays They lead the show.
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