Arko Petroleum Targets $210M IPO Near $1B Valuation

Key IPO Figures

Arko Petroleum Corp., a fuel wholesaler subsidiary of Arko Corp., is planning to raise up to $210 million in an initial public offering. The move could value the company at close to $1 billion.

According to a filing with the U.S. Securities and Exchange Commission, the company intends to sell 10.5 million shares. The proposed price range is between $18 and $20 per share. The company plans to list on the Nasdaq under the ticker symbol APC.

Company Profile and Operations

Arko Petroleum stands as one of the largest wholesale fuel distributors by volume in North America. Its operations span more than 30 states across the U.S.

The company operates via three segments: Wholesale, Fleet Fueling, and GPMP. It supplies fuel to 1,158 Arko retail sites and 2,053 gas stations operated by third-party dealers. In a recent fiscal year, Arko Petroleum distributed 2.1 billion gallons of fuel.

Post-Offering Strategy and Control

Following the IPO, parent company Arko Corp. will maintain significant control. It will hold 76.9% of the economic interests and 94.3% of the voting power in Arko Petroleum.

The company's primary goal is to provide quarterly cash distributions to stockholders. It will focus on stable, fee-based activities and leverage its relationship with Arko Corp. to maintain and grow cash flows.

Summary

Arko Petroleum's IPO aims to capitalize on its extensive distribution network to generate public investment and deliver regular returns to shareholders. The market's reception of the offering will be a key indicator, with investors closely watching its performance and its ability to execute its dividend strategy.

FAQ

Q: How much does Arko Petroleum aim to raise in its IPO?
A: The company plans to raise up to $210 million.

Q: Where will Arko Petroleum's stock be traded?
A: The company plans to list on the Nasdaq exchange under the symbol APC.

Source: Investing.com