ARKO Petroleum Corp. completed a $200 million initial public offering that closed on Feb. 13, according to a press release from its legal counsel. The offering comprised 11,111,111 shares of Class A common stock sold at a price of $18 per share.
After underwriting fees and other estimated offering expenses, the company reported net proceeds of approximately $183.2 million. Trading in the newly public shares began on Feb. 12 on the Nasdaq Capital Market, where the stock is listed under the ticker symbol APC.
ARKO Petroleum operates as a wholesale fuel distributor with operations spanning more than 30 U.S. states. The company supplies fuel across a broad footprint and is described as one of the larger wholesale distributors in North America.
ARKO Petroleum is a subsidiary of ARKO Corp. Following the closing of the offering, ARKO Corp. retained about 75.9% of APC's economic interest and roughly 94% of the combined voting power of APC's outstanding common stock. Those percentages reflect the parent company's continued controlling stake in the business post-offering.
Greenberg Traurig, LLP acted as legal counsel for both ARKO Petroleum Corp. and ARKO Corp. on the transaction. The legal team was led by Drew M. Altman, co-chair of the Miami Corporate Practice, with support from Win Rutherfurd, a Boston and Miami Corporate shareholder, and Theodore I. Blum, chair of the Atlanta office and Atlanta Corporate Practice.
Clear summary
- ARKO Petroleum completed a $200 million IPO by issuing 11,111,111 Class A shares at $18 per share.
- Net proceeds from the offering were approximately $183.2 million.
- Shares began trading on the Nasdaq Capital Market under the symbol APC on Feb. 12, and ARKO Corp. retains majority economic and voting control.
Key context: The transaction leaves the parent company with substantial influence over corporate governance and economic returns while ARKO Petroleum transitions to public ownership of a portion of its equity.
Key points
- Capital raise - The offering generated roughly $183.2 million in net proceeds for ARKO Petroleum after issuance costs.
- Market access - Public listing on the Nasdaq Capital Market provides APC with access to equity markets and a publicly quoted share price.
- Sector impact - The listing concerns the wholesale fuel distribution segment of the broader energy and oil distribution industries, with potential implications for market liquidity and investor visibility in that sector.
Risks and uncertainties
- Control risk - ARKO Corp.'s retention of about 94% of combined voting power means minority public shareholders will have limited control over corporate decisions; this affects governance dynamics in the energy and capital markets sectors.
- Concentration of economic interest - With ARKO holding approximately 75.9% of APC's economic interest, public investors receive a minority claim on economic returns, which may influence valuation and trading behavior.
- Operational exposure - As a wholesale fuel distributor operating in more than 30 states, APC's business performance remains subject to the typical operational and market risks tied to the petroleum distribution industry; specific operational risks are not detailed in the transaction release.