The name may conjure up memories of HBO’s Succession (in which the fictional company at the center of the action is called “Waystar Royco”), but this Waystar is very much real—and it’s hitting the public exchanges on Friday.
Waystar Holding Corp, a software company focused on the healthcare industry, is expected to go public on June 7, with shares trading on the Nasdaq Global Select Market under the “WAY” ticker.
On May 28, the company announced it would offer 45 million shares of common stock, priced between $20 and $23. But on June 6, the company said shares would list at $21.50 per share, valuing it at more than $967 million.
What is Waystar and is it profitable?
Waystar’s cloud software is fairly ubiquitous, as it provides simplified payment systems for healthcare providers including labs, hospitals, individual clinics, and doctor’s offices. It has roughly 30,000 clients, and last year, facilitated more than five billion transactions within the healthcare space, according to Renaissance Capital.
For the first three months of 2024, Waystar generated nearly $225 million in revenue and saw a net loss of almost $16 million, according to data included in the company’s S-1 filing.
Why is Waystar’s IPO noteworthy?
Waystar’s IPO stands as one of the biggest and most notable so far this year, and blows even more wind into the sails of the IPO market, which had seen a significant downturn over the past couple of years.
For example, Reddit went public earlier this year, as did Ibotta, and Shein could be next, although the fast fashion giant is reportedly eyeing a London listing instead of New York. Meanwhile, others are waiting in the wings.
Data from EY for the first quarter of 2024 shows that as of March 31, the United States had seen 38 IPOs year-to-date, more than during Q1 2023, and that IPO proceeds were up significantly year-over-year, too.
Additionally, EY says that a large percentage of IPO activity so far in 2024 has been driven by tech and healthcare—industries that Waystar straddles.