ARKO Petroleum, the fuel distribution subsidiary of ARKO Corp, has set terms for a sizable U.S. initial public offering, positioning itself as one of the more substantial downstream energy listings to hit the market in early 2026.

The Richmond, Virginia–based company plans to raise $200 million by offering 10.5 million shares at an expected price range of $18 to $20. At the midpoint of the range, ARKO Petroleum would be valued at approximately $865 million.

Business Overview

ARKO Petroleum operates as a large-scale fuel distributor, delivering roughly 1.5 billion gallons of fuel in the nine months ended September 30, 2025. Its customer base includes gas stations, sub-wholesalers, and other fuel purchasers across the United States.

The company runs through three operating segments:

The Wholesale segment supplies fuel to third-party dealer stations and ARKO retail sites under long-term cost-plus or consignment arrangements. Fleet Fueling focuses on proprietary and third-party cardlock locations, alongside issuing fuel cards to commercial customers. The GPMP segment supplies retail sites on a cost-plus basis with a fixed per-gallon adder, providing predictable margins tied to volume rather than commodity price swings.

Relationship With Parent Company

While ARKO Petroleum is being carved out as a standalone public company, it remains closely tied to its parent. In the nine months ended September 30, 2025, ARKO Corp accounted for about 42% of ARKO Petroleum’s revenue, underscoring both the stability and concentration risk embedded in the business model.

The structure highlights ARKO’s strategy of unlocking value by separating its distribution operations from its retail footprint, while still maintaining operational alignment.

IPO Details

ARKO Petroleum was formed in 2022 and plans to list on the Nasdaq under the ticker APC. The offering is being led by a heavyweight underwriting group, with UBS Investment Bank, Raymond James, Stifel, Mizuho Securities, and Capital One Securities acting as joint bookrunners.

The deal is expected to price during the week of February 9, 2026.

Market Context and Investor Appeal

Fuel distribution is often viewed as a lower-margin but more stable corner of the energy value chain, particularly for companies operating under cost-plus contracts. ARKO Petroleum’s scale, long-term supply arrangements, and diversified customer mix may appeal to investors seeking exposure to energy volumes without taking direct commodity price risk.

At the same time, dependence on its parent company for a large share of revenue, along with regulatory and environmental pressures facing fossil fuel distribution, remain key considerations for prospective investors.

Bottom Line

ARKO Petroleum’s planned IPO represents a significant monetization step for ARKO Corp and a rare opportunity for public investors to access a pure-play U.S. fuel distribution business of scale. If successfully priced, the offering could set a benchmark for how downstream energy carve-outs are valued in a market increasingly focused on cash flow stability over growth narratives.