Southwest Gas plans to list its unit Centuri in 2024Reporting by Sourasis Bose in Bengaluru
U.S. energy firm Southwest Gas Holdings said on Monday it plans to separate its utility infrastructure services business Centuri through an initial public offering next year.
The Las Vegas-based company said it expects to use the proceeds from the IPO, likely to be in the spring or summer of 2024, to repay its debt. It also intends to further reduce its ownership in Centuri following the launch.
Southwest Gas had announced the spinoff of Centuri in March last year, while it was locked in a battle with activist investor Carl Icahn over the purchase of MountainWest Pipelines which it sold later.
"We plan to move forward with an IPO of Centuri once we have onboarded a new Chief Executive Officer of Centuri," Southwest Gas CEO Karen Haller said.
Centuri's CEO Paul Daily had earlier announced his plan to retire in 2024.
Southwest Gas said it could still separate Centuri through a tax-free spin-off of all or a part of the unit if market conditions are not conducive to an IPO.