ARKO Petroleum IPO: Spun-off fuel wholesaler goes public on the Nasdaq

Freedom clients can now participate in early trading in shares of fuel wholesaler ARKO Petroleum on the Freedom trading platform. It is the fuel wholesaler subsidiary of convenience store firm ARKO Corp. Later on Thursday, Friday 12, the company’s shares will debut during the Nasdaq regular session under the ticker APC.

ARKO Petroleum raised $200 million in an IPO. The company sold 11.1 million shares at $18 apiece, at the bottom of the marketed $18-20 per share range. The company’s market value will be about $830 million, Bloomberg writes.

The offering was led by UBS, Raymond James, Stifel, Mizuho, and Capital One Securities.

ARKO Petroleum is the fuel wholesaler subsidiary of convenience store firm ARKO Corp. The parent company’s stake will be diluted to 76.9% following the deal, while acquisitions are expected to remain a key element of the standalone company’s strategy. “Our growth strategy includes the acquisition of other companies, contracts and assets that either complement or expand our existing businesses,” ARKO Petroleum stated in a filing with the U.S. Securities and Exchange Commission.

The company plans to use the IPO proceeds to repay a portion of its revolving credit facility totaling $380.8 million, the filing said.

After going public, ARKO Petroleum intends to pay a quarterly dividend of $0.50 per share, according to the prospectus.

ARKO Petroleum is engaged in wholesale fuel distribution to gas stations and independent dealers that have an interest in stable supplies, Trading Calendar wrote. The company operates in more than 30 U.S. states and supplies fuel to more than 1,100 gas stations, Bloomberg notes.

ARKO Petroleum’s net income for the nine months ended September 30 fell 25% year over year to $24.7 million. Revenue also declined, from $4.92 billion to $4.27 billion.

The company delivered 1.5 billion gallons of fuel during that period, versus 2.1 billion gallons for the full year 2024, the IPO prospectus said. According to the filing, ARKO Petroleum ranks among the largest wholesale fuel distributors in North America by gallons of fuel sold.

The foundations for the ARKO Petroleum spin-off were laid well before the IPO filing, Trading Calendar wrote. In earlier disclosures, the management highlighted structural differences between retail and wholesale distribution, noting that each business requires different performance metrics and investment priorities. Within the consolidated structure, wholesale fuel distribution scale and volume metrics were often overshadowed by retail same store sales and merchandise margin trends. The spin-off addresses this disconnect, Trading Calendar said, by allowing APC to be evaluated primarily on fuel volumes, contract stability, and operating efficiency.

ARKO Petroleum’s financial profile differs from that of retail operators, Trading Calendar noted. Wholesale distribution generates lower margins per gallon but benefits from consistently high volumes and recurring demand. This model supports steady demand across economic cycles, lower exposure to fluctuations in consumer spending, and more limited capex requirements than retail expansion.

Freedom Finance’s assessment is more cautious. The target price calculated by analyst Alem Bektemirov is nearly 7% below ARKO Petroleum's IPO price. He cited competition, wholesale price dynamics, and shifts in demand for transportation modes, as the main risks for the company’s business and revenue outlook.

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Freedom clients will be able to trade ARKO shares before the start of the main U.S. session. Premarket trading will open 2-3 hours early, at 15:30-16:30 Astana time. Investors can participate by selecting the symbol APC on the Freedom platform.