Centuri drops as Southwest Gas continues to reduce stake

Icahn Enterprises LP

07/08/2025 21:47

** Shares of utility infrastructure services firm Centuri Holdings CTRI.N down 5.7% post-market to $20 after secondary offering launch

    ** Southwest Gas Holdings SWX.N announces offering of 15 mln shares of CTRI

        ** In addition, SWX to sell ~1.6 mln CTRI shares to investment entities affiliated with Carl Icahn in concurrent private placement

      ** Following the transactions, SWX would cut its stake from ~52% to ~33%, or ~29.6 mln shares, per the prospectus

    ** Phoenix, Arizona
    -based CTRI has
    88.65 mln shares outstanding for about $1.9 bln market cap

    ** JP Morgan, Wells Fargo, BofA and Moelis & Co are joint lead bookrunners on the offering

    ** In Jun, SWX sliced its CTRI stake in 9.75-mln-share secondary priced at $20.75, and concurrent private placement

** CTRI was spun out of SWX and went public in Apr 2024 IPO priced at $21

** Of 7 analysts covering CTRI, 3 rate "strong buy" or "buy", 2 rate "hold" and 2 recommend "sell"; median PT is $25, LSEG data shows

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))