The IPO Buzz: Centuri Holdings (CTRI) Prices IPO at $21 – Top of Range

Centuri Holdings, Inc. (CTRI), a unit of Southwest Gas Holdings Inc. (SWX), priced its IPO at $21.00 – the top of its $18.00-to-$21.00 range – on Wednesday night (April 17, 2024) and sold 12.4 million shares – the number in the prospectus – to raise $260.4 million. The IPO is expected to trade Thursday, April 18 – on the New York Stock Exchange. UBS Investment Bank, BofA Securities,  J.P. Morgan and Wells Fargo Securities were the joint book-runners. “This is a plain vanilla deal with maybe a little extra chocolate sauce on top,” a veteran IPO trader says. “It should work.” IPO investors like Carl Icahn’s connection to the deal. Two Icahn limited partnerships had agreed to buy 2.59 million shares at a price equal to the IPO price in a concurrent private placement, the prospectus says. Southwest Gas Holdings Inc. (SWX), the parent of Centuri Holdings, sold all the shares in the IPO. After the IPO and the concurrent private placement, Southwest Gas Holdings will still own about 82.7 percent of Centuri’s outstanding stock, the prospectus says. Centuri Holdings, based in Phoenix, is a leading pure-play North American utility infrastructure services company with over 110 years of operating history. Centuri partners with regulated utilities to maintain, upgrade and expand the energy network that powers millions of homes and businesses, the prospectus says. “We are a leader in utility infrastructure services,” Centuri says in the prospectus. “Our customers are leading electric, gas and combination utility companies across North America, including American Electric Power, Enbridge, Entergy, Exelon, NiSource, National Grid, Sempra Energy and Southern Company, among others,” the prospectus says. Financial statements in the prospectus show that Centuri reported a net loss of $0.19 million on $2.9 billion of revenue for the fiscal year that ended Dec. 31, 2023. (For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.) Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board. To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message. Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions. Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.