(Bloomberg) -- Centuri Holdings Inc., the infrastructure services business of power company Southwest Gas Holdings Inc., raised about $314.8 million in an initial public offering and concurrent private placement priced at the top of a marketed range.

Centuri sold 12.4 million shares for $21 each on Wednesday, according to a statement. Investment funds backed by billionaire activist Carl Icahn agreed to purchase about 2.6 million shares in a concurrent private placement.

The pricing gives the Phoenix-based business a market value of $1.8 billion based on the outstanding shares in its filings with the US Securities and Exchange Commission. The company had marketed the shares for $18 to $21 each.

Southwest Gas said in 2022 that it would spin off the unit to better focus on its regulated natural gas business, after reaching a settlement with Icahn, who had objected to an acquisition it had made. Icahn Enterprises LP owns about 15% of Southwest Gas, data compiled by Bloomberg show. 

Centuri, which traces its roots to 1909, provides services to natural gas distribution and electric utilities, according to the filings. The company has about 12,500 employees and serves 43 US states as well as two Canadian provinces.

The company lost $186 million on $2.9 billion in revenue in the year ending Dec. 31, versus a net loss of $168 million on $2.8 billion of revenue in the previous fiscal year, the filings show.

Centuri intends to use the proceeds to repay debt, cover expenses from the offering and for general corporate and working capital purposes.

UBS Group AG, Bank of America Corp. and JPMorgan Chase & Co. are leading the offering. Centuri’s shares are expected to begin trading Thursday on the New York Stock Exchange under the symbol CTRI.

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