Shares of Telus International (Cda) Inc. (TSX: TIXT, NYSE: TIXT) opened at US$25 the first day of trading Wednesday (February 3).
Trading was on halt upon the opening of markets, however, the US$25 figure represents the high end of what the subsidiary of Vancouver-based telecom giant Telus Corp. (TSX:T) was seeking by going public.
Last week the company said it was planning to price shares at US$23-25.
Telus International is offering 37 million subordinate voting shares to investors in a bid to raise US$925 million.
Following the offering, parent company Telus is expected to hold 67.8% of Telus International’s voting power.
Telus International, founded in 2005, is known for offering IT services as well as customer service options to more than 600 global clients across more than 20 countries.
Clients range from businesses involved in gaming to healthcare to fintech.
Documents filed with the U.S. Securities and Exchange Commission reveal Telus International generated revenue of US$1.02 billion in 2019, US$834.6 million in 2018 and US$573.2 million in 2017.
Profit amounted to US$69 million in 2019, US$47.1 million in 2018 and US$43.4 million in 2017.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays, CIBC Capital Markets and BMO Capital Markets are among more than a dozen underwriters.
The IPO comes shortly after Telus International finalized the $1.2-billion acquisition of Lionsbridge AI on December 31, 2020.
The U.S.-based firm was the data annotation business of Lionbridge Technologies Inc. prior to the acquisition, and is known for annotating data in text, images, videos and audio in more than 300 languages for tech companies.