Southwest Gas prices secondary offering of Centuri shares at $19.50

LAS VEGAS - Southwest Gas Holdings, Inc. (NYSE:SWX) has priced its underwritten secondary public offering of Centuri Holdings, Inc. (NYSE:CTRI) common stock at $19.50 per share, the company announced Thursday. The offering price represents a slight discount to CTRI’s current trading price of $21.20, with the company carrying a market capitalization of approximately $1.9 billion.

The offering consists of 15 million existing shares of Centuri’s common stock, with Southwest Gas Holdings granting underwriters a 30-day option to purchase up to an additional 2.25 million shares. The transaction is expected to close on August 11, 2025. According to InvestingPro data, analysts maintain a moderate buy consensus with price targets ranging from $19 to $28 per share, suggesting potential upside from the offering price.

In a parallel move, investment entities affiliated with Carl C. Icahn will purchase 1,573,500 shares of Centuri’s common stock from Southwest Gas Holdings 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.

J.P. Morgan, Wells Fargo Securities, BofA Securities and Moelis & Company are serving as joint lead book-running managers for the offering, with Baird, BTIG, KeyBanc Capital Markets, MUFG, and UBS Investment Bank acting as book-running managers. Siebert Williams Shank is the co-manager.

Southwest Gas Holdings is the majority owner of Centuri Holdings, which provides utility infrastructure services across North America. The parent company’s primary operating subsidiary, Southwest Gas Corporation, distributes natural gas to over 2 million customers throughout Arizona, Nevada, and California. InvestingPro analysis shows Centuri maintains strong liquidity with a current ratio of 1.72, though it faces challenges with modest gross margins of 8.67%. Get access to detailed financial metrics and comprehensive analysis of over 1,400 stocks with an InvestingPro subscription.

The shares are being offered through an effective shelf registration statement filed by Centuri with the SEC, according to the press release statement.

In other recent news, Centuri Holdings reported second-quarter earnings that fell short of analyst expectations. The company announced adjusted earnings per share of $0.19, significantly below the anticipated $0.34. However, Centuri Holdings experienced a 7.7% increase in revenue, reaching $724.1 million, compared to $672.1 million in the same period last year, driven by robust growth in its electric operations segments. Additionally, Southwest Gas Holdings revealed plans to sell 15 million shares of Centuri Holdings in an underwritten secondary public offering. The offering includes an option for underwriters to purchase an additional 2.25 million shares within 30 days. Investment entities linked with Carl C. Icahn will also acquire approximately 1.57 million Centuri shares through a private placement at the same price as the public offering. These transactions are expected to proceed immediately following the main offering.

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