Waystar shares slip in debut after pricing IPO in middle of range

[Pelican Press 0]

Waystar shares slip in debut after pricing IPO in middle of range

Waystar shares slid about 3% in their Nasdaq debut on Friday, after the health-care payment software vendor priced its IPO in the middle of the expected range.

The stock opened at $21 per share,

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price of $21.50 late Thursday. Waystar said its expected price would be between $20 and $23 per share in May. Shares closed down more than 3% to $20.70 on Friday.

The IPO market has been largely dormant since late 2021 when the extended bull market turned and investors began to worry about a weakening economy. Few technology companies have been willing to try and go public since then, and no digital health companies had a public exit in 2023, according to a

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from Rock Health.

But the broader venture-backed tech market may be beginning to thaw. Social media platform

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, data center connectivity chip vendor Astera Labs and data software management maker Rubrik have all gone public this year. Health tech company Tempus AI has also issued a

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this year.

Based on Waystar’s initial share price, the company’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 more than 5 billion payment transactions annually, according to its

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. The company was formed in 2017 after the health-care payment companies Navicure and ZirMed merged.

“We’re excited about the opportunity to be a public company because we think it helps us with awareness, helps us with credibility, helps us improve our capital structure and allows for further investments in areas such as 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 million in the same ******* last year. Waystar reported a net loss of $15.9 million for the quarter compared with $10.6 million a year ago.

The company said it plans to use the money from the offering to pay off existing debt. JPMorgan Chase, Goldman Sachs and Barclays are leading the offering.

WATCH: Tech IPOs face hurdle

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Health care industry,Enterprise,Media,Breaking News: Business,Internet,Technology,Breaking News: Technology,

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Inc,Astera Labs Inc,Rubrik Inc,JPMORGAN DRN,Goldman Sachs Group Inc,Barclays PLC,Barclays PLC,business news
#Waystar #shares #slip #debut #pricing #IPO #middle #range

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