Waystar Announces Launch of Initial Public Offering

Rhea-AI Summary

Waystar Holding Corp. has announced its initial public offering (IPO) of 45,000,000 shares of common stock, with an estimated price range of $20.00 to $23.00 per share. The company has also granted underwriters a 30-day option to purchase an additional 6,750,000 shares at the IPO price, less the underwriting discount. The shares will be listed on Nasdaq under the symbol 'WAY.' Proceeds from the IPO will be used to repay outstanding debt. The registration statement has been filed with the SEC but is not yet effective. J.P. Morgan, Goldman Sachs, and Barclays are the lead book-running managers, among other financial entities involved in the offering.

Positive

• Launch of IPO with 45,000,000 shares.
• Estimated IPO price range of $20.00 to $23.00 per share.
• Additional 6,750,000 shares option for underwriters.
• Listing on Nasdaq under the symbol 'WAY'.
• Proceeds aimed at repaying outstanding debt.
• High-profile underwriters involved: J.P. Morgan, Goldman Sachs, Barclays.

Negative

• Registration statement not yet effective.
• Final offering price not determined, potential market risk.
• Dependence on IPO proceeds to repay debt.

Financial Analyst

The announcement of Waystar's initial public offering (IPO) is significant in the financial world for several reasons. Firstly, the proposed offering of 45 million shares at an estimated price range of $20.00 to $23.00 per share indicates a substantial capital raise. This means if all shares, including the additional 6.75 million shares, are sold at the upper end of the range, it could result in a total raise of $1.2 billion.

This capital is earmarked for repaying outstanding debt, which is a strategic move to strengthen the company's balance sheet. Lower debt levels can improve financial stability and reduce interest expenses, which is favorable for long-term profitability. As a retail investor, understanding these dynamics is critical as they can influence both short-term stock price movements and long-term company health.

However, investors should scrutinize the underwriting discount and associated costs, which will slightly reduce the net proceeds. Moreover, the final impact on share price post-IPO will depend on market reception and broader economic conditions. Listing on the Nasdaq Global Select Market under the ticker 'WAY' also places the company among reputable peers, potentially enhancing investor confidence.

Market Research Analyst

The involvement of prominent financial institutions like J.P. Morgan, Goldman Sachs and Barclays as joint lead book-running managers suggests strong market confidence in Waystar's offering. These institutions have a track record of managing successful IPOs, which can be reassuring for potential investors. Their participation often implies thorough due diligence and their networks can attract substantial institutional interest.

For a retail investor, it's also essential to consider the industry context. Waystar operates in the healthcare technology sector, a field experiencing robust growth due to increasing needs for efficient healthcare administration and billing solutions. This sector's positive outlook can support sustained demand for Waystar's shares. Investors should compare Waystar's valuation metrics, such as its price-to-earnings ratio, with industry peers to gauge its attractiveness.

LEHI, Utah and LOUISVILLE, Ky., May 28, 2024 /PRNewswire/ -- Waystar Holding Corp. ("Waystar") today announced the launch of its initial public offering of 45,000,000 shares of its common stock pursuant to a registration statement filed with the Securities and Exchange Commission (the "SEC"). Waystar expects to grant the underwriters in the offering a 30-day option to purchase up to an additional 6,750,000 shares of common stock at the initial public offering price, less the underwriting discount. The estimated initial public offering price is between $20.00 and $23.00 per share. Waystar has applied to list its shares on The Nasdaq Global Select Market ("Nasdaq") under the symbol "WAY."

Waystar intends to use the net proceeds from the offering to repay outstanding indebtedness.

J.P. Morgan, Goldman Sachs & Co. LLC, and Barclays are acting as joint lead book-running managers of the offering and as representatives of the underwriters for the proposed offering. William Blair, Evercore ISI, BofA Securities, RBC Capital Markets, and Deutsche Bank Securities are acting as joint bookrunners for the proposed offering. Canaccord Genuity and Raymond James are acting as co-managers for the proposed offering.

A registration statement on Form S-1 relating to the proposed offering has been filed with the SEC but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, and shall not constitute an offer, solicitation, or sale in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

The proposed offering will be made only by means of a prospectus. Copies of the preliminary prospectus related to the offering can be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by email at prospectus-eq_fi@jpmchase.com; Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526, or by email at prospectus-ny@ny.email.gs.com; or Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (888) 603-5847, or by email at barclaysprospectus@broadridge.com.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements include all statements that are not historical facts. The words "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future," "will," "seek," "foreseeable," the negative version of these words, or similar terms and phrases are intended to identify forward-looking statements. These forward-looking statements include any statements regarding the commencement of trading of Waystar's common stock on Nasdaq. These forward-looking statements, including statements regarding the size and expected price range of the initial public offering, are subject to a number of risks, uncertainties, and assumptions, including those described under "Risk Factors" in Waystar's registration statement relating to the offering. Except as required by law, Waystar has no obligation to update any of these forward-looking statements to conform these statements to actual results or revised expectations.

About Waystar

Waystar's mission-critical software is purpose-built to simplify healthcare payments so providers can prioritize patient care and optimize their financial performance. Waystar serves approximately 30,000 clients, representing over 1 million distinct providers, including 18 of 22 institutions on the U.S. News Best Hospitals list. Waystar's enterprise-grade platform annually processes over 5 billion healthcare payment transactions, including over $1.2 trillion in gross claims and spanning approximately 50% of U.S. patients. Waystar strives to transform healthcare payments so providers can focus on what matters most: their patients and communities.

Contact:

Daniel Yunger / Nick Capuano / Kerry Kelly
Kekst CNC
kekst-waystar@kekstcnc.com

 

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SOURCE Waystar

FAQ

What is the stock symbol for Waystar's IPO?

The stock symbol for Waystar's IPO is 'WAY'.

How many shares are being offered in Waystar's IPO?

Waystar is offering 45,000,000 shares in its IPO.

What is the estimated price range for Waystar's IPO?

The estimated initial price range for Waystar's IPO is between $20.00 and $23.00 per share.

What will Waystar use the IPO proceeds for?

Waystar intends to use the net proceeds from the IPO to repay outstanding indebtedness.

Which markets will Waystar's shares be listed on?

Waystar's shares will be listed on the Nasdaq Global Select Market.

Who are the lead book-running managers for Waystar's IPO?

J.P. Morgan, Goldman Sachs, and Barclays are the lead book-running managers for Waystar's IPO.