EQT-backed Waystar considers mid-range IPO pricing amid high demand

Investing.com – Healthcare payments software provider, Waystar Holding Corp., is contemplating pricing its initial public offering (IPO) around the midpoint of its marketed range, according to sources familiar with the matter.

The company, backed by EQT AB (ST:) and the Canada Pension Plan Investment Board, has seen orders for its shares outstrip availability by about tenfold.

Waystar, which filed for a Nasdaq listing in 2023, is offering 45 million shares priced between $20 and $23 each, as per its filings with the US Securities and Exchange Commission. At the midpoint of this range, the IPO could raise approximately $968 million, giving Waystar a market valuation of around $3.6 billion.

Investors including Neuberger Berman and the Qatar Investment Authority have expressed interest in purchasing up to an aggregate of $225 million in shares. Other investors include Bain Capital and Francisco Partners.

Following the offering, EQT is expected to remain the largest shareholder with a 29% stake, followed by CPPIB with 22% and Bain with 16.8%.

In 2023, Waystar reported a net loss of $51.3 million on revenue of $791 million, compared to a loss of $51.5 million on revenue of $705 million the previous year.