Southwest Gas sells 17.25 million Centuri shares for $325 million

LAS VEGAS - Southwest Gas Holdings, Inc. (NYSE:SWX) announced Monday it has closed its underwritten secondary public offering of Centuri Holdings, Inc. (NYSE:CTRI) common stock, selling 17.25 million shares at $19.50 per share. Centuri, now valued at approximately $1.77 billion by market capitalization, has seen its shares rise to $20.21, suggesting positive market reception of the offering. According to InvestingPro data, the company’s stock is currently trading in line with its Fair Value.

The offering, which included the underwriters’ full exercise of their option to purchase 2.25 million additional shares, generated approximately $325 million in net proceeds for Southwest Gas after deducting underwriters’ discounts and commissions.

In a concurrent private placement, investment entities affiliated with Carl C. Icahn purchased an additional 1.57 million shares at the same price, providing Southwest Gas with approximately $31 million in additional proceeds.

Following the transactions, Southwest Gas retains a 30.9% ownership stake in Centuri but no longer maintains a controlling financial interest. As a result, Southwest Gas will deconsolidate Centuri from its financial statements and account for its remaining interest using the equity method of accounting. InvestingPro analysis shows Centuri maintains strong liquidity with a current ratio of 1.72, indicating healthy ability to meet short-term obligations. Get access to detailed financial health metrics and 6 additional ProTips with an InvestingPro subscription.

The company plans to use proceeds from both transactions for debt repayment and general corporate purposes, according to the press release statement.

J.P. Morgan, Wells Fargo Securities, BofA Securities, and Moelis & Company served as joint lead book-running managers for the offering, with several other financial institutions acting as additional book-running managers and co-managers.

Southwest Gas Holdings operates primarily through its subsidiary Southwest Gas Corporation, which provides natural gas service to over 2 million customers throughout Arizona, Nevada, and California. Centuri provides utility infrastructure services across North America. Looking ahead, analysts tracked by InvestingPro expect Centuri to achieve profitability this year, with four analysts recently revising earnings estimates upward. The company’s next earnings report is scheduled for November 5, 2025.

In other recent news, Southwest Gas Holdings, Inc. has announced a secondary public offering of 15 million shares of Centuri Holdings, Inc. at a price of $19.50 per share. This offering includes a 30-day option for underwriters to purchase up to an additional 2.25 million shares. The transaction is expected to close on August 11, 2025, pending customary closing conditions. J.P. Morgan, Wells Fargo Securities, BofA Securities, and Moelis & Company are acting as joint lead book-running managers for this offering. Additionally, investment entities affiliated with Carl C. Icahn plan to acquire approximately 1.57 million Centuri shares from Southwest Gas in a private placement at the same price as the public offering. This private transaction is set to close immediately following the main offering. These developments come as Southwest Gas acts as the selling stockholder in this transaction.

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