Yahoo Finance Southwest Gas Unit Seeks Up to $315 Million in IPO, Placement
(Bloomberg) -- Centuri Holdings Inc., the infrastructure services business of power company Southwest Gas Holdings Inc., is seeking to raise as much as $315 million in an initial public offering and concurrent private placement.
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Centuri plans to offer 12.4 million shares for $18 to $21 each, according to a filing Monday with the US Securities and Exchange Commission. Separately, investment funds backed by billionaire activist Carl Icahn agreed to purchase about 2.6 million shares in a concurrent private placement, the filing shows.
At the top of the range, the Phoenix-based business would have a market value of $1.8 billion based on the outstanding shares in its filing.
The carve-out of Southwest Gas’ infrastructure services business comes about two years after announcing the split. The company said in 2022 that it would spin off the unit to better focus on its regulated natural gas business, after reaching a settlement with Icahn, who had objected to an acquisition it had made. Icahn Enterprises LP owns about 15% of Southwest Gas, data compiled by Bloomberg show.
Centuri, which traces its roots to 1909, provides services to natural gas distribution and electricity utilities, according to the filings. The company has about 12,500 employees and serves 43 US states as well as two Canadian provinces.
The company lost $186 million on $2.9 billion in revenue in its 2023 fiscal year, versus a net loss of $168 million on $2.8 billion of revenue in 2022, the filings show.
It intends to use the proceeds to repay debt, cover expenses from the offering and for general corporate and working capital purposes.
UBS Group AG, Bank of America Corp. and JPMorgan Chase & Co. are leading the offering, the filings show. Centuri plans for its shares to trade on the New York Stock Exchange under the symbol CTRI.
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