Telus International will trade under the symbol TIXT on both the New York Stock Exchange and the Toronto Stock Exchange. With the potential to raise US$833 million, the IPO is expected to give the Vancouver-based company a valuation of almost $7 billion it said.
TELUS International is offering 33.33 million of its subordinate voting shares in the IPO, comprised of 21.93 million from treasury and 11.40 million from TELUS Corporation (TELUS) and Baring Private Equity Asia, its selling shareholders.
The underwriters will also have a 30-day option to purchase up to five million additional subordinate voting shares at the IPO price, less underwriting discounts and commissions. The IPO price is currently expected to be between US$23 and US$25 per share.
Telus said that, following the IPO, it expects hold "approximately 66.6% of the combined voting power of TELUS International", 68.0% if the underwriters’ over-allotment option is exercised in full. Meanwhile, Baring Private Equity Asia is expected to hold approximately 31.5% of the combined voting power of TELUS International, 29.9% if the underwriters’ over-allotment option is exercised in full.
Established in 2005, Telus International provides IT services to global brands and counts Cisco Systems Inc, Salesforce.com Inc and Google Cloud among its customers, however it has close to 600 clients in total, including Uber, TikTok, PayPal, MasterCard, Wix Fitbit, TransUnion and Zara. Its biggest customer is Telus Corp. itself, which generated 26% of the firm's 2019 revenues.
In November, Telus International entered into an agreement to acquire Lionbridge AI in a pre-IPO deal valued at US$935 million (C$1.2 billion).
At the time, Darren Entwistle, president and CEO of TELUS, said: “Today’s announcement advances TELUS’ commitment to harness the power of technology to provide outstanding customer experiences on a global basis, while accelerating the digital transformation and strategic growth journey of TELUS International.”
