Shares of Waystar slipped approximately 3% in their Nasdaq debut on Friday after the health-care payment software vendor priced its IPO within the expected range.
Opening at $21 per share, slightly below the IPO price of $21.50 set late Thursday, Waystar had initially anticipated its price range to be between $20 and $23 per share in May. By the end of trading on Friday, shares closed down over 3% at $20.70.
Since late 2021, the IPO market has been relatively quiet as concerns about a weakening economy dampened investor enthusiasm. Few technology companies have opted to go public during this period, and there were no public exits for digital health companies in 2023, according to a report from Rock Health.
However, there are signs of thawing in the broader venture-backed tech market. Social media platform Reddit, data center connectivity chip vendor Astera Labs, and data software management maker Rubrik have all recently gone public. Health tech company Tempus AI has also filed a preliminary prospectus this year.
With an initial share price, Waystar’s market capitalization stands at approximately $3.5 billion, trading under the ticker symbol “WAY.”
Waystar provides health-care payment and revenue cycle management tools, facilitating over 5 billion payment transactions annually, according to its prospectus. The company was formed in 2017 through the merger of health-care payment companies Navicure and ZirMed.
“We’re excited about the opportunity to be a public company because we think it helps us with awareness, credibility, improves our capital structure, and allows for further investments in areas such as generative AI,” said Waystar CEO Matt Hawkins on CNBC’s “The Exchange” Friday.
For the quarter ending March 31, Waystar reported revenue of $224.8 million, an 18% increase from $191.1 million in the same period last year. The company recorded a net loss of $15.9 million for the quarter, compared with $10.6 million a year ago.
Proceeds from the offering are intended to pay off existing debt, with JPMorgan Chase, Goldman Sachs, and Barclays leading the offering.
