ARKO Petroleum prices $200M IPO at $18
Fuel distribution subsidiary begins Nasdaq trading as parent retains 94% voting control in spin-off
ARKO Petroleum Corp priced its initial public offering at $18 per share, raising approximately $200 million as the fuel distribution subsidiary begins trading on the Nasdaq under the ticker "APC." The offering marks a significant milestone for parent company ARKO Corp, which will retain majority ownership of its wholesale and fleet fueling business.
The Richmond, Virginia-based convenience store and fuel wholesaler announced the pricing late Wednesday, with shares of ARKO Petroleum (APC) set to commence trading February 12. The IPO involves 11.1 million shares of Class A common stock, with underwriters granted a 30-day option to purchase an additional 1.7 million shares to cover over-allotments.
"The successful pricing of ARKO Petroleum's initial public offering represents an important step in unlocking value for our shareholders," said ARKO's management in the offering announcement. "We believe the separate listing of our fuel distribution business will provide greater visibility into its distinct operational profile and growth trajectory."
ARKO will retain substantial control over its subsidiary post-IPO, owning 35 million shares of Class B common stock representing 75.9% of economic interests and 94% of combined voting power. If underwriters fully exercise their over-allotment option, ARKO's economic interest would decrease to 73.3% while voting control would remain at 93.2%.
The spin-off comes as ARKO executes broader operational improvements across its retail network. The company has been aggressively pursuing a "dealerization program" that converts company-operated stores to dealer sites, with 194 conversions completed in the first nine months of 2025. The initiative is expected to deliver a cumulative annualized operating income benefit exceeding $20 million at full implementation.
ARKO Petroleum encompasses ARKO's wholesale, fleet fueling, and GPM Petroleum segments, which collectively delivered 1.5 billion gallons of fuel in the nine months ended September 30, 2025. The subsidiary supplies fuel to gas stations, sub-wholesalers, and other commercial purchasers across ARKO's national network.
For the full year 2025, ARKO projected net income between $19.1 million and $21.3 million, with adjusted EBITDA expected to reach $246 million to $249 million—essentially flat compared to the $248.9 million reported in 2024. The company's retail segment generated $5.3 billion in revenue during 2024, including $1.8 billion from in-store merchandise sales.
ARKO shares, which trade on the Nasdaq under ticker ARKO, closed at $6.30 on February 11, giving the parent company a market capitalization of approximately $726 million. Analyst coverage remains limited but positive, with two buy ratings and an average target price of $8.50, according to market data.
The IPO was led by UBS Investment Bank, Raymond James, and Stifel as joint book-running managers, with Mizuho and Capital One Securities also serving as book-runners. The offering is expected to close on February 13, subject to customary closing conditions.
Investors will be watching ARKO Petroleum's early trading performance for signs of market appetite for fuel distribution assets, a sector that has faced margin pressure from volatile energy prices and increasing competition. The subsidiary's ability to demonstrate operational efficiency and growth potential in the public markets could influence ARKO's broader strategy for unlocking value across its diversified operations.
ARKO operates approximately 1,300 convenience stores across the United States under various regional brands, positioning itself as one of the nation's largest operators in the fuel and convenience retail sector. The company's four reportable segments—retail, wholesale, fleet fueling, and GPM Petroleum—create an integrated fuel supply chain from wholesale distribution through to retail point-of-sale.