Southwest Gas Holdings has completed its underwritten secondary public offering of Centuri Holdings common stock, with the company acting as the selling stockholder.
The offering involved the sale of 11.2 million existing shares at a price of $20.75 per share, generating substantial proceeds for the company.
The transaction included the full exercise of the underwriters’ option to purchase an additional 1.4 million shares to cover over-allotments.
This move underscores the strong market interest and successful execution of the offering strategy.
In a concurrent development, Southwest Gas Holdings has also reached an agreement to sell 1,060,240 shares of Centuri’s common stock to investment entities affiliated with Carl C. Icahn in a private placement, priced equally to the public offering.
This private sale is contingent on regulatory clearances and customary closing conditions, with a termination date set for 9 July 2025 if not finalised.
The shares involved in the private placement with the Icahn entities will not be registered under the Securities Act of 1933, indicating a different regulatory approach compared with the public offering.
From the public offering, Southwest Gas Holdings has netted approximately $225m after deducting underwriting discounts and commissions.
The private placement is expected to bring in an additional $22m. These funds will be allocated towards repaying existing company debts.
Following the closing of the public offering, Southwest Gas Holdings’ ownership in Centuri stands at approximately 53.3%.
The completion of the private placement will slightly reduce this stake to around 52.1%.
