Telus International stock rose by 30 per cent on the first day of trading after detaching itself from its former parent company Telus Corp.
The stock began trading on the New York and the Toronto Stock Exchange on Feb 3. The initial public offering (IPO) and secondary offerings are expected to raise CA$1.18 billion combined, the highest in the history of the Toronto stock exchange. On the first day of trading, the initial US$25 share price offer rose by 30 per cent, closing out at US$30.40 by the end of the day.
Telus International was the customer experience and IT consultant side of Telus Corp. It provides digital transformation advisory, risk management, and IT consulting. The company also focuses on digital transformation both internally and externally, with its AI chatbot solutions as a recent example. Telus International has more than 600 clients globally.
The gross proceeds from the offerings will be divided between Telus International, Telus Corp., and Baring Private Equity Asia. Telus Corp. will retain 67.8 per cent of the voting power in Telus International and 57.1 per cent of the economic interest. Baring Private Equity Asia will retain 30.1 per cent of the voting power and 25.4 per cent of the economic interest. The initial IPO is expected to generate CA$627 million and will be used to repay borrowing debt.