TELUS Prices Subsidiary's Upsized IPO At $925M, Offloads Stake Along With Baring

TELUS Corporation (NYSE: TU) priced the upsized initial public offering (IPO) of its subsidiary TELUS International of 37 million shares for $25 each to raise $925 million (CAD$1.18 billion) for TELUS, TELUS International, and Baring Private Equity Asia.
The proceeds may extend to $1.06 billion (CAD$1.36 billion) if the underwriters fully exercise their over-allotment option with an additional $490 million (CAD$627 million) to TELUS International debt repayment.
The shares are estimated to begin trading on the NYSE and the TSE under the ticker symbol “TIXT” on February 3, 2021.
The IPO is set to close on February 5, 2021, subject to closing conditions.
The shares offered in the IPO include 21 million from TELUS International treasury and 16 million from the selling shareholders TELUS and Baring.
The selling shareholders have granted the underwriters a 30-day option to procure up to additional 5.55 million shares at the IPO price.
TELUS will own 67.8% (57.1%) of the voting power of TELUS International upon the exercise of 67% (55.2%) of the underwriters’ over-allotment option.
Baring will own 30.1% (25.4%) of the voting power of TELUS International upon the exercise of 30.7% (25.3%) of the underwriters’ over-allotment option.
J.P. Morgan Securities and Morgan Stanley & Co. are the joint lead book-running managers for the IPO.
Price action: TU shares are up 0.19% at $20.09 in pre-market Wednesday.