Southwest Gas launches secondary offering of Centuri shares

Published 16/06/2025, 21:14
Southwest Gas launches secondary offering of Centuri shares

LAS VEGAS - Southwest Gas Holdings, Inc. (NYSE:SWX) announced today it has commenced an underwritten secondary public offering of 9.5 million existing shares of Centuri Holdings, Inc. (NYSE:CTRI) common stock. Centuri, currently valued at $1.95 billion, has shown strong performance with a 13.8% gain year-to-date, according to InvestingPro data.

The company plans to grant underwriters a 30-day option to purchase up to an additional 1.425 million shares. Southwest Gas has also entered into an agreement to sell $22 million in Centuri shares to investment entities affiliated with Carl C. Icahn in a concurrent private placement, subject to regulatory approvals and completion of the public offering. InvestingPro analysis indicates Centuri is currently trading above its Fair Value, with 8 additional key insights available to subscribers.

The private placement with Icahn Partners and Icahn Partners Master Fund LP would be priced at the same level as the public offering and must close by July 9, 2025, or it will terminate. The public offering’s completion is not dependent on the private placement closing.

Southwest Gas Holdings is the majority owner of Centuri, which provides utility infrastructure services across North America. With annual revenue of $2.66 billion and a healthy current ratio of 1.57, Centuri maintains strong liquidity despite operating with modest gross margins of 8.6%. Southwest Gas Corporation, the company’s primary operating subsidiary, distributes natural gas to over 2 million customers throughout Arizona, Nevada, and California. Detailed financial analysis and comprehensive research reports are available on InvestingPro.

The shares are being offered through an effective shelf registration statement filed by Centuri with the SEC. A preliminary prospectus supplement detailing the offering terms will be filed with the SEC.

This announcement is based on a press release statement from Southwest Gas Holdings and does not constitute an offer to sell or solicitation to buy securities.

In other recent news, Centuri Holdings, Inc. reported its Q1 2025 earnings with a net loss per share of $0.12, slightly missing the forecasted loss of $0.10. Despite this, the company saw a 4.2% increase in revenues, reaching $550.1 million compared to the previous year. Centuri also announced securing $350 million in new infrastructure contracts, highlighting its expanding role in infrastructure modernization across various sectors, including electric and gas utilities. Furthermore, Centuri initiated a secondary public offering of 9 million shares, with Southwest Gas Holdings facilitating the sale, and investment entities affiliated with Carl C. Icahn purchasing $50 million in Centuri’s common stock. The offering is managed by J.P. Morgan, UBS Investment Bank, and Wells Fargo Securities, among others. In leadership changes, Centuri appointed Behzad Kazerani as Senior Vice President of Sales and Business Development for its U.S. Gas operations, aiming to enhance market share. These developments reflect Centuri’s strategic efforts to strengthen its position in the utility infrastructure services market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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