RCM vendor Waystar announces IPO launch
Waystar Holding Corp., a revenue cycle management software vendor, launched its initial public offering of 45M shares of its common stock.
Waystar Holding Corp. recently announced the launch of its initial public offering of 45 million shares of its common stock, targeting a valuation of up to $3.83 billion.
Waystar provides revenue cycle management software to about 30,000 clients, representing over 1 million healthcare providers. Its platform processes more than 5 billion healthcare payment transactions annually, including over $1.2 trillion in annual gross claims across approximately half of US patients.
The company shared in a US Securities and Exchange Commission (SEC) filing on May 28 that it's offering the shares at a price range between $20-$23 apiece.
Waystar plans to use the proceeds from the IPO to pay down its debt. It anticipates receiving net proceeds of about $909.1 million from the sales of 45 million shares of common stock through this offering, based on the mid-point price.
J.P. Morgan Securities, Goldman Sachs and Barclays Capital are the lead underwriters for Waystar’s IPO.
Based in Louisville, Kentucky, Waystar launched in 2017 through the merger of revenue cycle management companies Navicure and Zirmed. Two years later, the company was valued at $2.7 billion when private equity firm EQT and Canadian pension fund giant CPPIB acquired a majority stake in Waystar. Bain Capital is also a minority shareholder in Waystar.
Waystar previously announced in October that it filed a registration statement on Form S-1 with the SEC related to the IPO offering but waited for more ideal market conditions to announce its launch.
The IPO announcement signals a thawing of digital health launches. Few companies have gone public over the last couple of years as the economy underwent a tumultuous period following the COVID-19 pandemic. However, economic improvements and rate cuts from the Federal Reserve in the second half of the year could bolster digital health IPO launches.
Revenue cycle management improvements are also top of mind for healthcare providers coming off of a couple of stagnant years for financial performance.
