Waystar shares slide on IPO after mid-range IPO price

Waystar CEO: We are building a visible, recurring revenue business that drives profitable growth

Waystar shares fell about 3 percent of their Nasdaq debut on Friday after the healthcare payment software provider priced its IPO in the midst of its expected range.

The stock opened at $21 per share. below the IPO Price of $21.50 late Thursday. Waystar said it expects to cost between $20 and $23 per share in May. Shares closed Friday down greater than 3% at $20.70.

The IPO market has been largely inactive since late 2021, when the continued bull market began to show and investors began to fret a couple of weakening economy. Since then, few technology corporations have been willing to try an IPO, and in keeping with one study, not a single digital health company had an IPO in 2023. report by Rock Health.

But the broader venture-backed technology market could also be beginning to thaw. Social media platform RedditSupplier of chips for data center connectivity AsteraLabs and data software management manufacturer category have all gone public this 12 months. The health-tech company Tempus AI has also preliminary prospectus this 12 months.

Based on Waystar's initial share price, the corporate's market capitalization is roughly $3.5 billion. The stock trades under the ticker symbol “WAY.”

Waystar provides tools for payment and revenue cycle management in healthcare and says it facilitates over 5 billion payment transactions annually. brochureThe company was founded in 2017 following the merger of healthcare payment corporations Navicure and ZirMed.

“We are excited about the opportunity to be a publicly traded company because we believe it will help us gain exposure, increase our credibility, improve our capital structure and enable further investments in areas such as generative AI,” Waystar CEO Matt Hawkins told CNBC's “The Exchange” on Friday.

For the quarter ended March 31, Waystar generated revenue of $224.8 million, up 18% from $191.1 million 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 earlier.

The company said it might use the proceeds from the difficulty to repay existing debt. JPMorgan Chase, Goldman Sachs And Barclays lead the offer.

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