ARKO Petroleum has completed an upsized initial public offering priced at $18 per share, the bottom of the $18 to $20 range it marketed to investors. The offering consisted of 11.11 million shares and brought in nearly $200 million, creating an implied enterprise valuation for the company of roughly $819 million.
Headquartered in Richmond, Virginia, ARKO Petroleum operates as a wholesale fuel distributor serving gas stations and third-party dealers in more than 30 U.S. states. The business is a subsidiary of convenience store operator ARKO Corp (NASDAQ:ARKO). Upon completion of the offering, ARKO Petroleum will begin trading on the Nasdaq exchange under the symbol "APC."
Company-reported financials for the nine-month period ended September 30 show a profit of $24.7 million on revenue of $4.27 billion. By comparison, during the same nine-month span a year earlier the company recorded a profit of $32.7 million on revenue of $4.92 billion.
Management has stated that proceeds from the IPO will be used to reduce outstanding debt and for general corporate purposes. The prospectus information highlights that the company’s core activity is the distribution of fuel to retail outlets and independent dealers across multiple states, a business concentrated on midstream-to-retail fuel logistics and wholesale supply.
Underwriters for the transaction included UBS Investment Bank, Raymond James, Stifel, Mizuho Securities and Capital One Securities, who served as joint bookrunners for the offering.
The transaction pricing - at the lower end of the marketed range - and the company’s recent financial performance through September provide immediate context for investors evaluating the new public equity. The offering size, share count sold and stated use of proceeds are now public, and ARKO Petroleum’s Nasdaq debut as APC will make the company’s financials and capital structure subject to the reporting and disclosure requirements associated with a U.S. exchange listing.
Investors and market participants should note the company’s mix of wholesale distribution across over 30 states and its status as a subsidiary of ARKO Corp, which remains a named entity in the company’s public filings.