Arko Petroleum launches IPO, aims to raise $210M
Arko Petroleum Corp. has begun marketing its planned initial public offering.| Arko, GPM logos
Arko Corp., which operates convenience stores under its subsidiary GPM Investments LLC, said Tuesday that its subsidiary, Arko Petroleum Corp., has begun marketing its planned initial public offering (IPO). Arko is seeking to raise about $210 million in the IPO that could value the company up to $910 million.
Arko Petroleum plans to offer 10.5 million shares of Class A common stock, according to a registration statement filed with the Securities and Exchange Commission. The company said it expects the offering price to be between $18 and $20 per share.
Arko Petroleum has applied to list its shares on the Nasdaq under the ticker symbol “APC.” Arko Petroleum Corp.’s business will include the operations of Arko’s wholesale, fleet fueling and GPM Petroleum segments, including fuel distribution to Arko’s convenience stores, the Richmond, Virginia-based company said in December when it first announced plans to take its wholesale fuel arm public.
Underwriters are expected to have a 30-day option to purchase up to an additional 1.575 million shares, Arko said.
The registration statement has not yet become effective and these securities may not be sold nor may offers to buy be accepted prior to the time when the registration statement becomes effective, the company said.
UBS Investment Bank, Raymond James and Stifel are serving as lead book-running managers in the IPO. Mizuho and Capital One Securities are also acting as joint book-running managers.
Arko operates in four segments: retail, which includes convenience stores under a family of community brands selling merchandise and fuel products to retail customers; wholesale, which supplies fuel to independent dealers and consignment agents; fleet fueling, which includes the operation of proprietary and third-party cardlock locations and issuance of proprietary fuel cards that provide customers access to a nationwide network of fueling sites; and GPM Petroleum, which sells and supplies fuel to the company’s retail and wholesale sites.
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