Southwest Gas to sell 15 million Centuri shares in secondary offering

PHOENIX - Southwest Gas Holdings, Inc. plans to sell 15 million shares of Centuri Holdings, Inc. (NYSE:CTRI), currently valued at $1.89 billion, in an underwritten secondary public offering, according to a press release issued Thursday. The offering will also include an option for underwriters to purchase up to an additional 2.25 million shares within 30 days. InvestingPro data shows the company’s shares trading at $21.20, with analysts recently revising earnings estimates upward for the upcoming period.

In a parallel transaction, investment entities affiliated with Carl C. Icahn will purchase 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 expected to close immediately after the main offering.

Centuri, a utility infrastructure services company generating $2.71 billion in revenue over the last twelve months, will not receive any proceeds from either transaction as all shares are being sold by Southwest Gas. InvestingPro analysis indicates strong financial stability with a current ratio of 1.72, suggesting adequate liquidity to meet short-term obligations. Get access to 6 more exclusive ProTips and comprehensive analysis through InvestingPro’s detailed research reports.

J.P. Morgan, Wells Fargo Securities, BofA Securities, and Moelis & Company are serving as joint lead book-running managers for the offering.

The offering will be made through a prospectus supplement and accompanying prospectus that form part of a registration statement filed with and declared effective by the Securities and Exchange Commission.

Centuri Holdings provides strategic utility infrastructure services to regulated utilities across the United States and Canada. The company’s shares are traded on the New York Stock Exchange under the ticker symbol CTRI.

The press release notes that completion of both transactions remains subject to customary closing conditions, with the private placement also contingent on the completion of the public offering. According to InvestingPro’s comprehensive analysis, which covers over 1,400 US stocks, Centuri maintains a FAIR overall financial health score, with net income expected to grow this year.

In other recent news, Centuri Holdings, Inc. reported its second-quarter earnings, which fell short of analyst expectations. The company posted adjusted earnings per share of $0.19, significantly below the anticipated $0.34. Despite this, Centuri experienced a revenue increase, reporting $724.1 million, a 7.7% rise from the previous year’s $672.1 million, driven by strong growth in its electric operations segments. Additionally, Centuri has raised its full-year outlook, indicating optimism about future performance. Meanwhile, Southwest Gas Holdings, Inc. announced a secondary public offering of 15 million existing shares of Centuri Holdings. Southwest Gas has also given underwriters a 30-day option to purchase an additional 2.25 million Centuri shares. These developments have been noteworthy for investors keeping an eye on Centuri Holdings.

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