VANCOUVER — As Telus prepares to take its Telus International subsidiary public, the company announced today the expected share price for the initial public offering (IPO) as well as the subsidiary’s preliminary fourth-quarter and full-year 2020 financial results.
Telus International is offering 33.33 million of its subordinate voting shares in the IPO, including 21.93 million from treasury and 11.4 million from Telus Corporation and Baring Private Equity Asia (its selling shareholders). Telus says the IPO price is currently expected to be between US$23 and US$25 per share.
Following the IPO, Telus is expected to hold approximately 66.6% of the combined voting power of Telus International and Baring Private Equity Asia is expected to hold about 31.5%.
Telus International has applied to list its subordinate voting shares on the New York Stock Exchange and on the Toronto Stock Exchange. More information about Telus International’s IPO announcement can be found here.
For the three months ended December 31, 2020, Telus International is estimating its revenues to be in the range of US$430 million to US$445 million, compared to its actual Q4 2019 revenues of US$272.5 million. The subsidiary’s estimated full-year 2020 revenues range from US$1.57 billion to US$1.58 billion, compared to actual full-year 2019 revenues of US$1.02 billion.
According to its preliminary results, Telus International’s net income in Q4 2020 is estimated to be between US$13 million and US$20 million, down from its actual net income of US$27.3 million in Q4 2019. For the full year ended December 31, 2020, Telus International estimates its net income ranged from US$95 million to US$102 million, compared to actual net income of US$69 million for the full 2019 fiscal year.
Telus International’s adjusted EBITDA is estimated to range from US$122 million to US$130 million in Q4 2020, compared to actual adjusted EBITDA of US$63.7 million in Q4 2019. Its full-year adjusted EBITDA is estimated to be between US$384 million and US$392 million, up from its actual adjusted EBITDA in full-year 2019 of US$225.6 million.
For more about Telus International’s preliminary financial results for Q4 and full-year 2020, please click here. The company did not announce when its final fiscal results will be released.
