Exclusive-Healthcare software firm Waystar eyes pricing IPO at midpoint of indicated range – sources

By Thomson Reuters Jun 6, 2024 | 12:54 PM

By Echo Wang

NEW YORK (Reuters) – Waystar, a private equity-owned vendor of software that helps hospitals and doctors’ practices manage their finances, has secured enough investor commitments to plan pricing its initial public offering at the mid-point of its indicated range, people familiar with the matter said on Thursday.

At the middle of the $20-to-$23-per-share range, the IPO would raise about $968 million in New York if 45 million shares are sold as planned, making it the biggest this year by a U.S. company. It would value Waystar at a fully diluted valuation of $3.69 billion.

The sources requested anonymity to discuss confidential deliberations and cautioned the final pricing decision has not yet been made.

Waystar and its major shareholders, buyout firm EQT and the Canada Pension Plan Investment Board, declined to comment.

The progress in Waystar’s IPO shows the market for new listings remains open after aluminium recycler Novelis pulled its stock market debut that would have raised as much as $945 million earlier this week.

The company blamed “adverse market conditions,” but sources close to the IPO effort said Novelis owner – India’s Hindalco Industries – could have gone ahead, and that they were not given the real reason.

(Reporting by Echo Wang in New York, editing by Deepa Babington)