Southwest Gas prices secondary offering of 15 million Centuri shares

PHOENIX - Southwest Gas Holdings, Inc. has priced an underwritten secondary public offering of 15 million shares of Centuri Holdings, Inc. (NYSE:CTRI) common stock, according to a press release statement. Centuri, currently valued at $1.88 billion, has seen its stock rise nearly 10% year-to-date, trading at $21.20. The offering is expected to close on August 11, 2025, subject to customary closing conditions. InvestingPro analysis indicates the stock is currently trading near its Fair Value, with analysts setting price targets between $19 and $28.

The underwriters have been granted a 30-day option to purchase up to an additional 2.25 million shares. J.P. Morgan, Wells Fargo Securities, BofA Securities, and Moelis & Company are serving as joint lead book-running managers for the offering.

In addition to the public offering, Southwest Gas announced that investment entities affiliated with Carl C. Icahn will purchase approximately 1.57 million shares of Centuri’s common stock in a concurrent private placement at the same price per share as the public offering. This private placement is expected to close immediately following the public offering.

Centuri, a utility infrastructure services company, is not selling any shares in either transaction and will not receive any proceeds from the sales.

The offering follows the filing of a registration statement on Form S-3 with the U.S. Securities and Exchange Commission, which has been declared effective. Additional book-running managers for the offering include Baird, BTIG, KeyBanc Capital Markets, MUFG, and UBS Investment Bank, with Siebert Williams Shank acting as co-manager.

Southwest Gas remains the selling stockholder in these transactions, which represent a continuation of Centuri’s transition to an independent publicly traded company following its previous separation from Southwest Gas.

In other recent news, Centuri Holdings, Inc. reported second-quarter earnings that fell short of analyst expectations, with adjusted earnings per share at $0.19 compared to the anticipated $0.34. Despite this earnings miss, the company achieved revenue of $724.1 million, marking a 7.7% increase from the previous year’s $672.1 million, driven by robust growth in its electric operations segments. In another development, Southwest Gas Holdings, Inc. announced a secondary public offering of 15 million existing shares of Centuri Holdings at a price of $19.50 per share. The offering includes a 30-day option for underwriters to purchase an additional 2.25 million shares. Additionally, entities associated with Carl C. Icahn are set to acquire approximately 1.57 million Centuri shares in a private placement, matching the public offering price. These transactions are expected to close soon, with the private placement following immediately after the public offering.

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