Benzinga | Feb 3, 2021 08:52AM EST

TELUS Prices Subsidiary's Upsized IPO At $925M, Offloads Stake Along With Baring

* TELUS Corporation (NYSE: TU) priced the upsized initial public offering (IPO) of its subsidiary TELUS International of 37 million shares for $25 each to raise $925 million (CAD$1.18 billion) for TELUS, TELUS International, and Baring Private Equity Asia.

* The proceeds may extend to $1.06 billion (CAD$1.36 billion) if the underwriters fully exercise their over-allotment option with an additional $490 million (CAD$627 million) to TELUS International debt repayment.

* The shares are estimated to begin trading on the NYSE and the TSE under the ticker symbol "TIXT" on February 3, 2021.

* The IPO is set to close on February 5, 2021, subject to closing conditions.

* The shares offered in the IPO include 21 million from TELUS International treasury and 16 million from the selling shareholders TELUS and Baring.

* The selling shareholders have granted the underwriters a 30-day option to procure up to additional 5.55 million shares at the IPO price.

* TELUS will own 67.8% (57.1%) of the voting power of TELUS International upon the exercise of 67% (55.2%) of the underwriters' over-allotment option.

* Baring will own 30.1% (25.4%) of the voting power of TELUS International upon the exercise of 30.7% (25.3%) of the underwriters' over-allotment option.

* J.P. Morgan Securities and Morgan Stanley & Co. are the joint lead book-running managers for the IPO.

* Price action: TU shares are up 0.19% at $20.09 in pre-market Wednesday.