FRANKLIN, Tenn. -- Delek US Holdings Inc. set on Thursday its planned initial public offering (IPO) at 10 million shares at an estimated price of $14 to $16 per share, said Reuters.
The Franklin, Tenn.-based diversified energy business said in an amended filing with the U.S. Securities & Exchange Commission (SEC) that the underwriters have the option to buy an additional 1.5 million shares to cover over-allotments.
Lehman Brothers and Citigroup are the lead underwriters for the IPO.
The company said [image-nocss] it intends to list its stock on the New York Stock Exchange (NYSE) under the symbol DK.
Delek USA operates an independent refinery in Tyler, Texas, and has a network of 349 company-operated retail fuel and convenience stores, the MAPCO Express chain.
It said it expects to receive approximately $136.8 million in net proceeds from the IPO. It will use the funds to repay debt, for future acquisitions, for capital improvements to its refinery and c-stores, and for the construction of new retail fuel outlets and c-stores.
As reported in CSP Daily News in February, Delek USA hopes to have as many as 500 stores within the next three years. The company in the past has said target acquisitions would occur in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Texas, in addition to Tennessee and Virginia.
MAPCO in recent years has made aggressive strides with its c-store programs. It recently opened two ultimate convenience stores, one in Brentwood and one in Hendersonville, Tenn. The stores, known as MAPCO Marts, feature made-to-order food, about 20 premium hot beverages at newly designed serving stations, upscale breads and a walk-in beer cave, as well as indoor seating and an upscale exterior-interior design. The new MAPCO Marts also offer custom-designed, bilingual, touchscreen terminals inside the store and at pump islands. These terminals allow customers to order food while fueling.
For 2005, Delek earned $64.1 million on $2.03 billion of net sales. For the prior year, the company earned $7.3 million on $857.9 million of net sales.
Delek Holding's Delek USA is a unit of Delek Petroleum Ltd., an Israeli company based in the municipality of Netanya.
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