TELUS International, a subsidiary of TELUS corporation, traded publicly for the first time this week at the Toronto Stock Exchange and the New York Stock Exchange. It seems that investors were interested in the company because its stock price increased by 30% on its first morning. The company set the price of its shares at $25 when it went public on Wednesday of that week.
TELUS International is a consulting company that is described as a customer experience company. It works in high-tech projects, building bots, social media moderating, and customer support. The company will boost TELUS Corp’s digital and AI business, according to a document filed with the United States Securities and Exchange Commission. Investors will be buying into TELUS’ business for games, hospitality, communications, games, media, e-commerce, fin-tech, and health care. As a consulting firm, the company identifies competitors as consulting firms in addition to I.T. companies and traditional contact companies.
The consulting company has over 600 clients including Uber, MasterCard, PayPal, Tik Tok, Google, and Zara. It is building bots and engineer to engineer support systems for Google. Two of TELUS international’s biggest customers are TELUS corporation, itself, and Google. TELUS corporation represented 26% of the company’s revenue in 2019 and Google represented about 12%.
The initial public offering of TELUS international stocks will bring in an estimated $493.9 million, which TELUS corporation (the parent company) will use to pay back debts. The new consulting company is a fast-growing business that accumulated $1 billion in revenue in 2019, and $95 - $102 million net income in 2020. After the public offering, TELUS corporation will still own two-thirds of TELUS international.
Resources:
1) Press, T. (2021, February 03). Spinoff Telus international HITS stock exchange in largest tech IPO in TSX HISTORY. Retrieved February 03, 2021, from https://financialpost.com/investing/spinoff-telus-international-hits-stock-exchange-in-largest-tech-ipo-in-tsx-history
2) Press, T. (2021, January 25). Telus international prices public offering in bid to expand digital business. Retrieved February 03, 2021, from https://financialpost.com/telecom/telus-international-prices-public-offering-in-bid-to-expand-digital-business
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