Mister Car Wash location
Source: Mister Car Wash Facebook

Mister Car Wash Looks to Raise $600 Million in IPO

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Jun. 18 2021, Published 11:53 a.m. ET

Mister Car Wash, the nation’s largest car wash brand, wants to raise $600 million in its IPO. What can investors expect moving forward?

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The Tucson, AZ-based company set its IPO terms on June 17. Under the terms, Mister Car Wash will offer 37.5 million shares at a price range of $15–$17. At the midpoint share price, the company would be valued at $5.03 billion. 

Mister Car Wash shares will be listed on the New York Stock Exchange under the ticker symbol “MCW.”

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car wash
Source: Mister Car Wash Facebook

The exact price of shares is scheduled to be set on June 21. The company expects to have about 296 million shares outstanding after the IPO. 

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“Americans view their cars as a symbol of freedom, and we are proud that they trust us with one of their most prized assets. While we have grown to become the largest national car wash company, we’re even more excited about the path in front of us. As we embark on this next chapter in our company’s lifecycle, we see a long, wide-open road in front of us and are thrilled to have you join us on our journey,” said John Lai, the president and CEO of Mister Car Wash, in the company’s prospectus.

The bookrunners for the Mister Car Wash IPO are BofA Securities, Morgan Stanley, Goldman Sachs, Jefferies, BMO Capital Markets, and UBS Investment Bank.

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Mister Car Wash has locations in 21 states.

Founded in 1996, Mister Car Wash has grown to have 344 locations in 21 states. The company estimates that it washed 59.6 million cars at its locations in the 12 months prior to March 31, 2021. The company’s net revenue was $595 million for the same period. 

The average price of a base exterior car wash at Mister Car Wash is about $8.

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Most Mister Car Wash sales are through its Unlimited Wash Club (UWC), which has over 1.4 million members. Club members pay monthly subscription costs from $20 for the Basic Express package to $60 for Platinum Full Serve.

According to data in the company’s prospectus, the average UWC Member washed their car over 30 times in 2020. The UWC program went from 30 percent of total wash sales in 2015 to 62 percent of total wash sales in the first quarter of 2021.

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“We’re bullish about our future growth potential and are committed to developing ways to make the program even more attractive to more non-members,” the prospectus states. 

The U.S. car wash industry as a whole generates $11 billion a year. 

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mister car wash uwc
Source: Mister Car Wash Facebook

Employees are key to Mister Car Wash’s success.

Mister Car Wash’s team of employees is key to the company’s success, according to company officials. Employees are paid competitive wages, offered training opportunities, and provided with good benefits.

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“Customers often tell me that what impresses them the most about Mister Car Wash is our people, and we fundamentally believe that our people take care of our customers because we take care of them,” Lai states in the prospectus. 

Who owns Mister Car Wash?

The private equity firm Leonard Green & Partners purchased Mister Car Wash in 2014 for about $380 million. 

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