The Nasdaq Market website is seen on the day that shares of Fact Social and Trump Media & Know-how Group begin buying and selling beneath the ticker “DJT”, exterior the Nasdaq Market website in New York Metropolis, U.S., March 26, 2024.
Brendan Mcdermid | Reuters
Waystar shares slid about 3% of their Nasdaq debut on Friday, after the health-care cost software program vendor priced its IPO in the midst of the anticipated vary.
The inventory opened at $21 per share, beneath the IPO worth of $21.50 per share late Thursday. In Might, Waystar mentioned its anticipated worth 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 buyers started to fret a few weakening financial system. Few know-how corporations have been keen to take the leap since then to attempt to go public, and no digital well being corporations had a public exit in 2023, in line with a report from Rock Well being.
However the broader venture-backed tech market could also be starting to thaw. Social media platform Reddit, knowledge middle connectivity chip vendor Astera Labs and knowledge software program administration maker Rubrik have all gone public this yr. Well being tech firm Tempus AI has additionally issued a preliminary prospectus this yr.
Based mostly on Waystar’s preliminary share worth, the corporate’s market cap is about $3.5 billion. The inventory is buying and selling beneath the ticker image “WAY.”
Waystar gives health-care cost and income cycle administration instruments, and facilitates greater than 5 billion cost transactions yearly, in line with its prospectus. The corporate was shaped in 2017 after the health-care cost corporations Navicure and ZirMed merged.
“We’re excited concerning the alternative to be a public firm as a result of we expect it helps us with consciousness, helps us with credibility, helps us enhance our capital construction and permits for additional investments in areas reminiscent of generative AI,” Waystar CEO Matt Hawkins advised CNBC’s “The Alternate” Friday.
For the quarter ending March 31, Waystar generated income of $224.8 million, up 18% from $191.1 in the identical interval final yr. Waystar reported a internet lack of $15.9 million for the quarter in comparison with $10.6 million a yr in the past.
The corporate mentioned it plans to make use of the cash from the providing to repay present debt. JPMorgan Chase, Goldman Sachs and Barclays are led the providing.
WATCH: Tech IPOs face hurdles
