Waystar celebrates their IPO on the Nasdaq on June seventh, 2024.
CNBC
Waystar shares slid about 3% of their Nasdaq debut on Friday, after the health-care payment software vendor priced its IPO in the midst of the expected range.
The stock opened at $21 per share, below the IPO price of $21.50 per share late Thursday. In May, Waystar said its expected price could be between $20 and $23 per share.
The IPO market has been largely dormant since late 2021, when the prolonged bull market turned and investors began to fret a couple of weakening economy. Few technology firms have been willing to take the leap since then to try to go public, and no digital health firms had a public exit in 2023, in keeping with a report from Rock Health.
However the broader venture-backed tech market could also be starting to thaw. Social media platform Reddit, data center connectivity chip vendor Astera Labs and data software management maker Rubrik have all gone public this 12 months. Health tech company Tempus AI has also issued a preliminary prospectus this 12 months.
Based on Waystar’s initial share price, the corporate’s market cap is about $3.5 billion. The stock is trading under the ticker symbol “WAY.”
Waystar offers health-care payment and revenue cycle management tools, and facilitates greater than 5 billion payment transactions annually, in keeping with its prospectus. The corporate was formed in 2017 after the health-care payment firms Navicure and ZirMed merged.
“We’re excited in regards to the opportunity to be a public company because we expect it helps us with awareness, helps us with credibility, helps us improve our capital structure and allows for further investments in areas akin to generative AI,” Waystar CEO Matt Hawkins told CNBC’s “The Exchange” Friday.
For the quarter ending March 31, Waystar generated revenue of $224.8 million, up 18% from $191.1 in the identical period last 12 months. Waystar reported a net lack of $15.9 million for the quarter in comparison with $10.6 million a 12 months ago.
The corporate said it plans to make use of the cash from the offering to repay existing debt. JPMorgan Chase, Goldman Sachs and Barclays are led the offering.
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