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UPDATE 1-Mister Car Wash rises 26% in NYSE debut, valued at $5.6 bln

(Adds shares sold, company background)

June 25 (Reuters) - Mister Car Wash Inc was valued at $5.6 billion in its New York Stock Exchange debut on Friday after shares of the Tucson, Arizona-based company opened 26% above their offer price.

The company’s stock opened at $18.9 per share, up from its initial public offering (IPO) price of $15 per share.

The company, controlled by private equity firm Leonard Green & Partners LP, sold 37.5 million common shares along with some existing investors.

The IPO was priced at the low end of a previously announced range for a total of $562.5 million.

Mister Car Wash, which operates 344 car washes across 21 states, reported net revenue of $595 million for the 12 months ended March 31, its IPO prospectus showed.

Founded in 1996 and led by John Lai, the company terms itself as the largest car wash brand in the United States.

Mister Car Wash said its monthly subscription program, called Unlimited Wash Club, grew by about 247,000 members in 2020 despite the COVID-19 pandemic.

The company’s comparable store sales, however, decreased last year between March and May after a temporary suspension of operations at more than 300 of its locations due to the COVID-19 response measures.

Leonard Green & Partners will own about 79% of Mister Car Wash’s common stock after completion of the offering.

BofA Securities, Morgan Stanley, Goldman Sachs and Jefferies are the lead underwriters for the share sale. (Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel)

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