(Bloomberg) -- Centuri Holdings Inc. shares climbed 10% in the first trading day following the company’s initial public offering and concurrent private placement, which priced at the top of a marketed range.

Shares in the infrastructure services business of power company Southwest Gas Holdings Inc. closed at $23.13 each on Thursday in New York, after a deal priced at $21 per share to raise about $314.8 million in total.

Centuri sold 12.4 million shares 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 about $2 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 has seen steady revenue growth and stands to benefit from elevated capital expenditures by utilities, Chief Executive Officer William Fehrman said in an interview. Spending by public investor-owned US electric utilities has climbed from $74 billion in 2010 to about $168 billion last year, according to data cited in the company’s filings.

“The key thing is performing once we emerge,” said Fehrman, who said he joined the company in January after retiring from Berkshire Hathaway Energy partly because he wanted to be involved in taking Centuri public.

While Centuri stands to benefit from infrastructure related to demand for solar and wind power, the company’s core focus is providing the “blocking and tackling” for energy growth by building and maintaining local electricity and gas distribution systems.

“I’m more excited about the broader need for generation in this country,” Fehrman said. “I think some of that will be gas and some of that will be renewables.”

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

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

(Updates with closing share price in second paragraph.)

©2024 Bloomberg L.P.