LAS VEGAS - Southwest Gas (NYSE:SWX) Holdings, Inc. (NYSE:SWX), a utility company providing natural gas and infrastructure services, announced today that its subsidiary, Centuri Holdings, Inc., has initiated a roadshow for its initial public offering (IPO) of 12.4 million shares.
The IPO price range is set between $18.00 and $21.00 per share. Centuri also plans to list its shares on the New York Stock Exchange under the ticker symbol "CTRI."
Upon completion of the IPO, Southwest Gas is expected to retain approximately 82.7% ownership of Centuri's outstanding common stock, which could decrease to around 81.0% if the underwriters fully exercise their option to purchase an additional 1.86 million shares.
The joint lead book-running managers for the offering are UBS Investment Bank, BofA Securities, and J.P. Morgan. Wells Fargo Securities will also serve as a book-running manager, with Baird, KeyBanc Capital Markets, and Siebert Williams Shank acting as co-managers.
The offering is subject to a registration statement filed with the U.S. Securities and Exchange Commission (SEC) but not yet effective. The sale of shares will only proceed after the registration statement becomes effective, in compliance with the registration requirements of the Securities Act of 1933, as amended.
Southwest Gas Holdings, through its subsidiaries, is involved in the purchase, distribution, and transportation of natural gas, as well as providing comprehensive utility infrastructure services across North America. The company is committed to delivering safe and reliable service to over 2 million customers in Arizona, Nevada, and California.
Centuri Group, Inc., a wholly owned subsidiary of Southwest Gas, is a strategic utility infrastructure services company that partners with regulated utilities to build and maintain the energy network in the United States and Canada.
This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The sale of these securities will not occur in any state or jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any such state or jurisdiction.
InvestingPro Insights
As Southwest Gas Holdings, Inc. (NYSE:SWX) prepares for the IPO of its subsidiary, Centuri Holdings, Inc., investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Southwest Gas has a market capitalization of $5.43 billion and a P/E ratio that has adjusted from 35.62 to a more attractive 26.43 in the last twelve months as of Q4 2023. This suggests a more favorable valuation relative to the company's near-term earnings growth.
In terms of shareholder returns, the company boasts a high shareholder yield and has consistently raised its dividend for 17 consecutive years, indicating a strong commitment to returning value to its investors.
Additionally, Southwest Gas has maintained dividend payments for an impressive 54 consecutive years. The company's financial stability is further underscored by the fact that its liquid assets exceed short-term obligations, providing a cushion for operational needs and potential growth opportunities.
Investors may also find encouragement in the company's recent stock performance. Southwest Gas is trading near its 52-week high, with a significant 30.23% price uptick over the last six months and a 16.54% return over the last three months. This momentum could be an indicator of investor confidence in the company's strategic direction and operational execution.
For those considering an investment in Southwest Gas, the InvestingPro platform offers additional insights and metrics that could be valuable in making an informed decision. With a total of 12 additional InvestingPro Tips available, investors can delve deeper into the company's financials and market trends. To access these insights and more, investors can visit https://www.investing.com/pro/SWX and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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