The US leading car wash chain Mister Car Wash Inc. (NYSE:MCW) made its public debut on Friday noon, with the stock price rising more than 40%. Shares pulled back later in the session to close at about $20.70, valuing the company at over $4.7 billion.
IPO highlights
Mister Car Wash expects to have 296 million shares outstanding after issuing 37.5 million in the IPO for $468.8 million.
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In the company’s prospectus, Mister Car Wash said it had 344 sites in 21 states as of March 31. Its business suffered from the covid 19 pandemic, forcing it to close 300 stations. However, things are getting back to normal, and the company expects significant top-line growth.
Technical overview
Mister Car Wash stock pulled back later in the day after the afternoon spike. The pullback could continue early next week amid volatile trading in the early days after going public.
Investors can target pullback profits at approximately $20.15 and $19.39. The immediate resistance levels are $21.08 and $21.55.
Bottom line: target the pullback before volatility calms
In summary, MCW stock will experience short-term volatility. Next week investors can expect shares to pull back before making another rebound.
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