Waystar, a company specializing in healthcare payments, plans to go public in early June, according to informed circles. The company, backed by private equity firm EQT, had originally hoped to go public at the end of last year but postponed these plans due to turbulent markets. Now, the roadshow pitch to investors is set to start later this month, before the company celebrates its stock market debut in early June.

Waystar aims for a valuation of around 5 to 6 billion US dollars, according to one of the sources. This is significantly higher than the 2.7 billion US dollars the company was valued at in 2019 during the acquisition of the majority stake by EQT and the Canada Pension Plan Investment Board.

The IPO Market Gradually Recovers After More Than Two Years of Slump. Several companies that recently went public, such as the social network Reddit and the digital rewards platform Ibotta, have exceeded their IPO prices and are showing a positive trading trend.

Private Equity Firms Under Pressure to Divest Their Holdings and Return Money to Investors. Due to the subdued merger and acquisition activities in recent years – partly due to differing price expectations between buyers and sellers – initial public offerings often represent a more attractive exit strategy in many cases.

Nevertheless, deal activity is increasing again compared to the previous year. According to Dealogic, IPO volume in the US has risen by almost 50% so far this year, while the volume of mergers and acquisitions has increased by over 30%.