Southwest Gas's Centuri Prices IPO Of 12.40 Mln Shares At $21.00/shr

(RTTNews) - Southwest Gas Holdings Inc. (SWX) said that its subsidiary, Centuri Holdings Inc., priced its initial public offering of 12.40 million shares of Centuri's common stock at an initial public offering price of $21.00 per share.

In addition, Centuri has granted the underwriters a 30-day option to purchase up to an additional 1.86 million shares of its common stock to cover over-allotments, if any.

Centuri's common stock has been approved for listing on the New York Stock Exchange under the symbol "CTRI" and is expected to begin trading on April 18, 2024.

The IPO is expected to close on April 22, 2024.

In addition to the shares of Centuri's common stock sold in the IPO, Centuri announced that Icahn Partners and Icahn Partners Master Fund LP, investment entities affiliated with Carl Icahn, will purchase 2.59 million shares of Centuri's common stock in a concurrent private placement at a price per share equal to the IPO price, for gross proceeds of approximately $54.4 million.

The concurrent private placement is expected to close immediately following the closing of the IPO and is subject to the satisfaction or waiver of customary closing conditions, including the completion of the IPO.

Centuri expects net proceeds from the IPO and the concurrent private placement, after deducting underwriting discounts and commissions and estimated offering expenses payable by Centuri, to be about $292.6 million, excluding any exercise of the underwriters' option to purchase additional shares to cover over-allotments.

Centuri intends to use the net proceeds from the IPO and the concurrent private placement to repay amounts under Centuri's revolving credit facility and under Centuri's term loan and the remainder for general corporate purposes.