VANCOUVER — Telus International’s initial public offering (IPO) of 37 million subordinate voting shares started trading today on the Toronto Stock Exchange and New York Stock Exchange, with the company setting the initial IPO price at $30.70 (or US$25) per share.
At the end of Wednesday’s trading day, Telus International’s share price closed at $39.95 (up 30.13%) on the TSX and US$30.40 (up 21.6%) on the NYSE. The subordinate voting shares are trading under the ticker symbol “TIXT” on both stock exchanges, and the offering is expected to close on February 5, 2021, subject to customary closing conditions.
The company says the offering is expected to generate aggregate gross proceeds of $1.18 billion (US$925 million) to Telus International, Telus Corp. and Baring Private Equity Asia, the selling shareholders. The net proceeds to Telus International are estimated to be approximately $627 million (US$490 million), which are expected to be used to repay outstanding borrowings under its revolving credit facilities, says the company’s press release.
The shares offered in the IPO include approximately 21 million shares from Telus International treasury and approximately 16 million from Telus and Baring.
Following the offering, Telus is expected to hold approximately 67.8% of the voting power of Telus International and 57.1% of the economic interest, while Baring is expected to hold 30.1% of the voting power of Telus International and 25.4% of the economic interest.
According to a press release issued this morning by TMX Group, which operates the Toronto Stock Exchange, with Telus International’s IPO expected to raise US$925 million, it is the largest technology IPO in TSX history by total proceeds raised.
Telus president and CEO Darren Entwistle and Telus International president and CEO Jeff Puritt celebrated the company’s listing by virtually opening the TSX this morning.
“Telus International’s IPO marks an historic day for our team members around the world. Over the past decade-and-a-half, thanks to the passion, talent and innovation of our global team, Telus International has evolved as an organization, demonstrating world leadership in customer service excellence, digital transformation, and heartfelt caring in the communities where our team members live, work and serve,” said Entwistle, in TMX Group’s press release.
“Telus International has been a pillar within Telus’ dynamic growth strategy, and as TI begins this next chapter in its journey, the entire Telus team is thrilled to see our colleagues positioned to realize their goals for future growth, including driving positive outcomes for our customers, shareholders and our communities. We are so proud to support and help drive, the continued exciting evolution of Telus International.”
For more details about Telus International’s IPO, please click here.
