ARKO Corp. announced that its subsidiary, ARKO Petroleum Corp., has kicked off an investor roadshow in connection with a proposed initial public offering of its Class A common stock, the company said in a press release.
The offering being marketed includes 10.5 million Class A shares with an anticipated price band of $18.00 to $20.00 per share. Under the terms provided, the underwriting syndicate will have a 30-day option to buy up to an additional 1.575 million shares at the IPO price, subject to customary underwriting discounts and commissions.
ARKO Petroleum Corp. has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission, but the filing has not yet become effective. As noted in the release, the securities included in the registration cannot be sold until the registration statement is declared effective by the SEC.
The company has applied to have its Class A shares listed on the Nasdaq Stock Market under the ticker symbol "APC." The financing is being led by a syndicate that names UBS Investment Bank, Raymond James and Stifel as lead book-running managers, with Mizuho and Capital One Securities serving as joint book-running managers.
Business profile and operations
ARKO Petroleum Corp. describes itself in the filing as a fuel distribution firm and wholesale fuel distributor that serves customers across more than 30 states. Its geographic footprint includes states in the Mid-Atlantic, Midwest, Northeast, Southeast and Southwest regions of the United States.
Parent company ARKO Corp., based in Richmond, Virginia, operates convenience stores and functions as a fuel wholesaler in the United States. The parent company reports four operating segments: retail, wholesale, fleet fueling and GPM Petroleum.
What investors are being told now
The roadshow marks the start of formal marketing to potential investors while the S-1 remains pending with the SEC. The underwriting group’s option to acquire additional shares provides flexibility for the offering size for a 30-day period following the IPO, subject to final pricing and the completion of regulatory processes.
Because the registration statement has not yet been declared effective, there can be no sale of the proposed shares until the SEC completes its review and authorizes the offering to proceed.