Healthcare payments company Waystar said on Tuesday it was targeting a valuation of up to $3.83 billion in its initial public offering in the United States, joining a clutch of companies looking to tap into improving investor appetite for new listings.
The U.S. IPO market is on a rebound in 2024, after two sub-par years amid increasing hopes of a soft landing for the economy and rate cuts by the Federal Reserve in the second half of the year.
Waystar is aiming to raise up to $1.04 billion by offering 45 million shares at a price range of $20 to $23 apiece.
Cornerstone investors, who agree to purchase stock in a company before its listing, have indicated an interest in up to $225 million worth of shares sold in this offering.
Such investors include funds managed by Neuberger Berman and a wholly-owned subsidiary of sovereign wealth fund Qatar Investment Authority.
Waystar will use the IPO proceeds to pay down debt.
Louisville, Kentucky-based Waystar was formed in 2017 through the merger of Navicure and ZirMed. The company develops payments software that helps clients such as large hospital systems to manage their finances.
Waystar was valued at $2.7 billion in 2019 when Swedish private equity firm EQT and Canadian pension fund giant CPPIB acquired a majority stake in the company from alternative investment firm Bain Capital, which remains a minority shareholder.
After the IPO, EQT, CPPIB, and Bain will own about 29.2%, 22.3%, and 16.8% stake, respectively, in Waystar.
Waystar will list on the Nasdaq Global Select Market under the symbol “WAY”.
J.P. Morgan Securities, Goldman Sachs and Barclays Capital are the lead underwriters for the IPO.
