Shares in Telus International (CDA) Inc. (NYSE:TIXT) soared to close up 21.6%, after its first day of trading on the New York Stock Exchange, on February 3.
The spin-off of Vancouver-based Telus Corp. (NYSE:TU; TSX:T) went public at US$25 per share, although trading started a bit late, at around 10:30 a.m., in New York.
Shares almost immediately soared to the day-high of US$33.58, before stabilizing for much of the day, and then fading into the close, to end at US$30.40.
The US$25 IPO price was at the high end of what analysts had expected the telecom to price shares. Some last week had expected the price to be as low as US$23.
Telus International offered 37 million subordinate voting shares, and generated US$925 million. A dual-class share structure will give Telus Corp. 67.8% of Telus International’s voting power. This is because Telus Corp.'s shares in the company get 10 votes, whereas the subordinate voting shares carry only one vote per share.
Telus created Telus International 15 years ago to be a call-centre operator for itself, as well as other technology firms. Rapid expansion ensued and Telus International branched into moderating content online, developing mobile apps and building virtual assistants, such as chatbots.
Telus International is now a large, diverse digital-services company, which provides an array of services. Alphabet Inc. (Nasdaq:GOOG, GOOGL), Uber Technologies Inc. (NYSE:UBER) and TikTok are some of its more than 600 clients around the world.
Telus Corp. sold a 35% stake in Telus International to Hong Kong's Baring Private Equity Asia in 2016. Baring then partnered with Telus International in 2019 to buy Berlin-based Competence Call Center, which provides call-centre services for clients.
BIV reported this morning that 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.
The prospectus said that Telus International's revenue grew 17% during the first nine months of 2020, compared with the previous year, and that it planned to grow via acquisition, as well as by attracting new clients and forging deeper relationships with existing clients.
BIV ranked Telus Corp. as B.C.'s largest company, ranked by revenue, in 2020. To see that list, click here.
Some have speculated that future spin-offs for Telus Corp. could be for its Telus Health, or its Telus Agriculture subsidiaries.
