Utah-based Waystar Announces Public Offering Slated to Raise Over $800 Million for its Three Largest Shareholders

Lehi, Utah-based Waystar (NASDAQ:WAY) announced yesterday afternoon it would conduct a secondary public offering where its three largest shareholders will sell at least 18 million shares of common stock with gross proceeds of over $800 million, based upon yesterday's closing price of $45.11.

According to the Waystar news release, "... certain investment funds of EQT AB, Canada Pension Plan Investment Board, (and) Bain Capital ... and their respective affiliates ..." are the shareholders that will be selling shares of Waystar common stock in the public offering.

Waystar explained in its release that

"... (it) will not receive any proceeds from the sale of shares in the offering by the Selling Stockholders."

As outlined in its prospectus filed yesterday with the U.S. Securities and Exchange Commission on Form S-1, the ownership positions of its selling shareholders (and the number of shares they plan to sell) are

1. EQT, a 28.3% ownership position, plans to sell ~7.69 million shares;
2. CPPIB, a 21.6% ownership position, plans to sell ~5.88 million shares; and
3. Bain, a 16.3% ownership position, plans to sell ~4.42 million shares.

The "... underwriting group (is) led by J.P. Morgan, Goldman Sachs ... and Barclays, who are acting as joint lead book-running managers."

The selling shareholders have "... grant(ed) the underwriters a 30-day option to purchase up to 2,700,000 additional shares of common stock."

If the underwriters exercise their 30-day option, the after-the-fact ownership positions and percentage of the selling shareholders will be

1. EQT, a 23.1% ownership position with ~39.81 million shares remaining;
2. CPPIB, a 17.7% ownership position with ~30.44 million shares remaining; and
3. Bain, a 13.3% ownership position with ~22.92 million shares remaining.

The timing for this secondary offering has not yet been disclosed, nor the pricing for the offering, but I expect it to occur within the within the next

Additional Waystar News

Additionally, Waystar announced yesterday its annual results for 2024 (ended December 31), with

• $943.5 million in income in 2024, an increase of ~$152 million over 2023 results, and increase of ~19%, while
• The net loss in 2024 dropped to ~$19.1 million down from a net loss of ~$51.3 million in 2023.

Additionally, Waystar's quarterly results for Q4 2024 (also ended December 31) saw the company produce

• Net income of $19.0 million in Q4 2024 on gross revenue of ~$244.1 million vs.
• A net loss of $14.4 million in Q4 2023 on gross income of ~$206.7 million.

For readers not familiar with Waystar, the company "... is a cloud-based provider of various Revenue Cycle Management tools designed to help healthcare provider firms more quickly, accurately, and efficiently maximize revenue throughout their organizations."

In fact, in "BREAKING NEWS: Waystar Holdings is Now a Publicly Traded Company and has Raised $967+ Million in Gross Proceeds from its IPO" (my 07 June 2024 writeup about Waystar's IPO), I wrote:

"Waystar is one of the leading HealthTech companies in the U.S. as it helps over 30,000 healthcare provider organizations process over 5 billion payments annually and generated more than $790 million in revenue in 2023, most of it Annual Recurring Revenue (or ARR)."

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