Two companies, Telus International and ON24, are making their public equity markets debut Wednesday.
Both companies priced their deals at the high end of the range with Telus increasing its offering.
On Wednesday, Telus ended up raising $925 million. The Vancouver, B.C.-based company sold 37 million subordinate voting shares at $25 each, up from the 33.33 million shares at $23 to $25 it had planned to sell. It is expected to trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol TIXT.
Telus subordinate voting shares, which aren’t convertible into any other class of shares, will have one vote per share, the prospectus said.
J.P. Morgan and Morgan Stanley are underwriters on the deal.
Telus International, a unit of Telus Corp. (TU), provides IT services to help digitally transform customer experiences, an estimated $147 billion market in 2019. Telus provides its services to more than 600 clients in technology and games, communications, and media, as well as e-commerce and fintech.
Telus is profitable, reporting $81.9 million in earnings for the nine months ended Sept. 30 compared with $41.7 million for the same period in 2019, the prospectus said. Revenue rose 52% to $1.14 billion for the nine months ended Sept. 30. It has 50,000 team members in 20 countries.
Baring Private Equity acquired 35% of Telus in 2016. It will have a 31.5% share of voting power after the IPO, the prospectus said. Telus Corp., the parent, will have 66.6%.
ON24 is also set to open Wednesday. The San Francisco company raised $428 million after selling roughly 8.6 million shares at $50 each, the top of its $45 to $50 range. ON24 is scheduled to trade on the New York Stock Exchange under the ticker ONTF.
Goldman Sachs, J.P. Morgan, and KeyBanc Capital Markets are underwriters on the deal.
Founded in 1998, ON24 is a webinar marketing platform that helps businesses engage with customers. The company offers multimedia and virtual event experiences for over 1,900 customers in more than 40 countries. Clients include Fiserv (FISV), IBM ( IBM ), Marketo, SAE, and Deloitte.
ON24 swung to a profit over the past year. It reported $11.2 million net income for the nine months ended Sept. 30, up from a loss of about $14.1 million for the same period in 2019, a prospectus said. Revenue rose 59% to $103.7 million as of Sept. 30. It has 547 full-time employees.
Write to Luisa Beltran at [email protected]
