TELUS International to raise up to US $958M in NYSE/TSX IPO at up to US $6.7B valuation

CPE News (1/25/2021) – TELUS International (Cda) Inc. plans to issue 33,333,333 subordinate voting shares at an offering price of between US $23 to $25 per share for gross proceeds of between US $737 million to US $833 million or between US $882 million and $958 million if the over-allotment option is exercised in full. (all dollar figures in US dollar)

The initial public offering (IPO) will consist of a treasure offering of 21,929,824 subordinate voting shares by TELUS International and a con-current secondary offering of 11,403,509 of our subordinate voting shares by selling shareholders.

Baring has granted the underwriters an option to purchase up to an additional 5,000,000 subordinate voting shares solely to cover over-allotments.

Following the closing of the offering, TELUS International will have 42,715,577 subordinate voting shares and 223,728,993 multiple voting shares outstanding or 47,715,577 subordinate voting shares and 218,728,993 multiple voting shares, if the underwriters exercise their over-allotment option in full.

TELUS International is being valued at $6.66 billion (non-dilutive) at an offering price of $25 per share or about $6.73 billion in dilutive valuation.

Following the closing of the offering, TELUS Corporation is expected to increase its voting power from 64.8% to 66.6%. New investors in the offering will collectively have 1.5% voting power while Baring will see its voting power reduced from 34.8% to 31.5%.

TELUS International has applied to list its subordinate voting shares on the New York Stock Exchange (NYSE) and on the Toronto Stock Exchange (TSX) under the symbol “TINT.”

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC acts as joint lead book-running managers for the IPO. Barclays, BofA Securities and CIBC Capital Markets act as book-running managers.

Shearman & Sterling LLP and Osler, Hoskin & Harcourt LLP act as US and Canadian legal counsel respectively to TELUS International while Paul, Weiss, Rifkind, Wharton & Garrison LLP and Stikeman Elliott LLP are acting for the underwriters.

TELUS International is a leading digital customer experience innovator that designs, builds and delivers next-generation solutions for global and disruptive brands.

Vancouver based TELUS International has almost 50,000 “team members” located in 50 delivery locations in over 20 countries: Austria, Bosnia and Herzegovina, Bulgaria, Canada, China, El Salvador, France, Germany, Guatemala, India, Ireland, Latvia, the Philippines, Poland, Romania, Slovakia, Spain, Switzerland, Turkey and the United States.

photo credit: TELUS International