ARKO Petroleum prices IPO at $18, raises nearly $200 million

Investing.com -- Fuel distributor ARKO Petroleum priced its upsized initial public offering at $18 per share, the low end of its marketed range, raising nearly $200 million.

The Richmond, Virginia-based company sold 11.11 million shares on Wednesday, after initially marketing them between $18 and $20. The IPO valued the company at approximately $819 million.

ARKO Petroleum, a subsidiary of convenience store operator ARKO Corp, will list on the Nasdaq exchange under the ticker symbol "APC."

For the nine-month period ended September 30, the company reported a profit of $24.7 million on revenue of $4.27 billion. This compares to a profit of $32.7 million on revenue of $4.92 billion during the same period a year earlier.

The wholesale fuel distributor plans to use the IPO proceeds to reduce debt and for general corporate purposes. The company primarily distributes fuel to gas stations and third-party dealers across more than 30 U.S. states.

UBS Investment Bank, Raymond James, Stifel, Mizuho Securities and Capital One Securities served as joint bookrunners for the offering.

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