ARKO Petroleum Corp. (APC.US), one of the largest independent wholesale fuel distributors in the United States, has completed its initial public offering. The company priced approximately 11.11 million shares of common stock at $18.00 per share, raising total gross proceeds of $200 million. Based on the offering price, the company's initial market valuation is approximately $830 million. Trading on the Nasdaq Stock Market is expected to begin on February 12.
According to a previous filing with the U.S. Securities and Exchange Commission (SEC), Arko Petroleum had initially marketed 10.5 million shares within a price range of $18 to $20 per share. The final offering size was increased, and the shares were priced at the bottom of the indicated range to raise the $200 million.
As a core asset of Fortune 500 convenience store giant ARKO Corp. (ARKO.US), ARKO Petroleum holds a significant position in the North American fuel supply chain. Its operations span more than 30 U.S. states and the District of Columbia. For the first nine months of 2025, the company's total fuel deliveries exceeded 1.5 billion gallons. Beyond supplying over 1,100 retail convenience stores operated by its parent company, its service network also covers more than 2,000 third-party independent gas stations and sub-distributors, and it wholesales fuel to unattended fueling sites serving commercial vehicle fleets.
Regarding capital structure and financial planning, the net proceeds from the offering will be used primarily to optimize the balance sheet, with a focus on repaying approximately $184 million in debt owed to parent company ARKO Corp. Following the spin-off IPO, ARKO Corp. will retain absolute control, holding approximately 75.9% of the economic interest and about 94% of the voting power.
To attract long-term income-oriented investors, management has stated its intention to implement a dividend policy post-listing, with an initial quarterly dividend set at $0.50 per share.
Financially, for the nine-month period ended September 30, net income attributable to Arko Petroleum was $24.7 million on revenue of $4.27 billion. This compares to net income of $32.7 million on revenue of $4.92 billion for the same period a year earlier. The company delivered 1.5 billion gallons of fuel in the first nine months of 2025, compared to 2.1 billion gallons for the full year 2024.
The offering was led by UBS Investment Bank, Raymond James & Associates, and Stifel Nicolaus & Company as joint book-running managers. The company is scheduled to begin trading on the Nasdaq Stock Market on Thursday under the ticker symbol "APC".
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