ARKO Petroleum Launches IPO Roadshow Targeting $200M

IPO Launch Details

ARKO Petroleum Corp., a subsidiary of ARKO Corp. (ARKO), has initiated the roadshow for its initial public offering. The company is offering 10.5 million shares of its Class A common stock, with an anticipated price range of $18.00 to $20.00 per share. This offering is structured to potentially raise approximately $200 million before underwriting discounts.

Offering Overview

The company has applied to list its shares on the Nasdaq Stock Market under the ticker symbol "APC." The deal's underwriters have a 30-day option to purchase up to an additional 1.575 million shares at the IPO price. The offering is being led by UBS Investment Bank, Raymond James, and Stifel as lead book-running managers, with Mizuho and Capital One Securities serving as joint book-running managers.

Market Context and Company Profile

ARKO Petroleum operates as a large-scale fuel distribution and wholesale company, serving customers in over 30 states across the United States. This public offering occurs as its parent, ARKO Corp., continues to solidify its position in the convenience store and fuel wholesale markets. The IPO aims to secure capital for the subsidiary's future growth and operations. The registration statement on Form S-1 filed with the SEC has not yet become effective.

Summary

The success of the ARKO Petroleum IPO will be subject to investor sentiment and prevailing market conditions. The offering cannot proceed until the SEC registration statement becomes effective. Market participants will be closely monitoring the final pricing and initial trading performance to assess the investment outlook for the fuel distribution industry.

FAQ

Q: What is the proposed ticker symbol for ARKO Petroleum Corp.?
A: The company has applied to list on the Nasdaq under the ticker symbol "APC."

Q: How many shares are being offered in the IPO?
A: ARKO Petroleum is offering 10.5 million shares, with an underwriter option for an additional 1.575 million shares.

Source: Investing.com