(Bloomberg) — Health-care payments software maker Waystar Holding Corp. priced its initial public offering at the midpoint of a marketed range to raise $968 million in one of 2024’s biggest listings.
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Waystar, whose backers include EQT AB and Canada Pension Plan Investment Board, sold 45 million shares for $21.50 each after offering them for $20 to $23, according to a statement Thursday confirming earlier reports by Bloomberg News and Reuters. The company said in the statement that it intends to use the net proceeds from the IPO to repay debt.
At the IPO price, Waystar has a market value of about $3.6 billion based on the outstanding shares listed in its filings with the US Securities and Exchange Commission. Including debt, the company has an enterprise value of about $5 billion.
Neuberger Berman and the Qatar Investment Authority have indicated an interest in buying as much as an aggregate of $225 million in shares, the filings show.
The listing is the fourth-biggest in the US this year as IPOs continue to return after a two-year slump. It’s also the largest by a US-based company, with 89 companies raising about $18.5 billion via US IPOs since Jan. 1, according to data compiled by Bloomberg. The largest of those was cruise operator Viking Holdings Ltd.’s $1.77 billion listing in April. That compares with 71 listings that raised $10.5 billion at this point last year, the data show.
If Waystar’s underwriters exercise their full overall allocation option, the offering would top the $1 billion mark.
The firm’s investors also include Bain Capital and Francisco Partners and their affiliates, according to their filings. After the offering, EQT is expected to remain the largest shareholder with a 29% stake, followed by CPPIB with 22% and Bain with 16.8%.
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Waystar, based in Lehi, Utah, said it had a net loss of $51.3 million on revenue of $791 million in 2023, compared with a loss of $51.5 million on revenue of $705 million the previous year.
The offering is being led by JPMorgan Chase & Co., Goldman Sachs Group Inc. and Barclays Plc. The company’s shares are expected to begin trading Friday on the Nasdaq Global Select Market under the symbol WAY.
(Updates with statement in second paragraph)
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