Telus International, a publicly traded company now separate from the Telus telecom industry, made history at Toronto Stock Exchange. On Wednesday, Telus International made its debut as the largest initial public offering of a technology company on the TSX.
The newly traded company is Telus Corporation’s digital consulting business. The share price rose more than 30 per cent on its first morning of trading in Toronto. The company began trading at a whopping US$33.10 at TSX and NYSE. By the end of its opening day, the share price had climbed to US$33.40.
Telus Int. is a 15-year-old company, which provides outsourced online customer service for brands such as Fitbit Inc., and Uber Technologies Inc. Telus International’s CEO, Jeff Puritt credits the astonishing results to greater interest in tech services businesses south of the border, in the United States.
Telus Communications Inc., the wholly owned principal subsidiary of Telus Corporations, has also been performing exceptionally well domestically. Telus Communications Inc. is a company that provides a wide range of telecom products and services including internet access, home security, healthcare, and data plans. It owns subsidiaries such as Koodo Mobile, DirectAlert, and TKXS Inc.
Founded three decades ago, in 1990, the company is in hopes to soon replace Rogers Communications as the market leader of the telecom industry of Canada.
The telecom industry has seen a downfall in 2020 due to the COVID-19 pandemic. The industry is expected to bounce back in this year, better-prepared. If it weren’t for the pandemic, the industry would have continued to grow. For perspective, total Canadian telecom revenues reached $53.1 billion in 2018, growing by 5.5%.
In 2019, Telus purchased an additional $2,141 million of Property, Plant, and Equipment. This signaled that management had faith in the long-term outlook and profitability of the company. PP&E are a company’s physical assets that are expected to generate revenue for many years.
Currently trading at CAD$27.02, its stock prices have steadily increased over time in the past 10 years. The lowest has been $11.88, which was the issue price and the highest since then was in February 2020 at $27.74. According to CEO Darren Entwistle’s annual report, he is expecting share prices to climb higher and exceed the current highest price in 2021.
Telus Corporations is ready to leave investors flabbergasted this year.