Arko Corp. (NASDAQ: ARKO), a Fortune 500 company and one of the largest convenience store operators, fuel wholesalers, and cardlock operators in the United States, has announced the filing of a registration statement for the proposed initial public offering of its subsidiary, Arko Petroleum Corp. (APC).
APC’s business will include the operations of Arko’s wholesale, fleet fueling, and GPM segments and will be responsible for the wholesale distribution of motor fuels to substantially all of Arko’s retail convenience stores that sell fuel. The proposed offering will be made only by means of a prospectus.
As part of its strategic plan, Arko Corp. filed a registration statement on Form S-1 with the Securities and Exchange Commission (SEC) for the proposed initial public offering of class A common stock of its subsidiary, APC. UBS Investment Bank, Raymond James, and Stifel will serve as lead book-running managers in the proposed offering, with Mizuho and Capital One Securities acting as joint book-running managers.
The registration statement on Form S-1 has been filed with the SEC but has not yet become effective. The securities may not be sold, nor may offers to buy be accepted prior to the time when the registration statement becomes effective.
Arko Corp. operates in four reportable segments: retail, wholesale, fleet fueling, and GPM petroleum. The retail segment includes convenience stores selling merchandise and fuel products to retail customers, while the wholesale segment supplies fuel to independent dealers and consignment agents. The fleet fueling segment includes the operation of proprietary and third-party cardlock locations and the issuance of proprietary fuel cards, providing customers access to a nationwide network of fueling sites. Additionally, GPM petroleum sells and supplies fuel to retail and wholesale sites and charges a fixed fee, primarily to fleet fueling sites.
Arko Corp. is a significant player in the industry, and the proposed IPO of its subsidiary, APC, signifies a strategic move in its business operations. Following these announcements, the company's shares moved -2.98%, and are now trading at a price of $4.89. If you want to know more, read the company's complete 8-K report here.
