Telus Corp T.T

Globe & Mail

[retiredcf]

Telus Corp.  was up as Telus International, its business and IT services division, kicked off a roadshow to market its initial public offering and is expecting to price its stock at between US$23 and US$25 per share.

Telus International will be offering 33.33 million subordinate voting shares – including 21.93 million from its treasury and 11.40 million from its owners, Telus and Baring Private Equity Asia – when it goes public on the Toronto Stock Exchange and New York Stock Exchange. It will trade under the ticker TIXT.

Telus International expects to raise roughly US$493.9-million if it prices the IPO at US$24 per share, according to its most recently filed prospectus with the U.S. Securities and Exchange Commission.

Telus International runs the digital customer experience for brands such as Fitbit, Uber and online gamer Zynga. It started out 15 years ago as a call centre operator for Telus and a handful of U.S. technology and telecom firms and grew organically and through acquisitions.

[rfguysd]

Question for the forum:   Is  there sufficient information to  determine  how telus stock price  is affected by  the IPO?  I  made  some basic assumptions that: Telus  ebitda   5.6B/yr Shares outstanding 1.28B Telus international  ebitda 400M/yr Market cap / ebitda   for  high tech companies =15  Any 

[firstworld]

IMO domestic business is far more valuable than international because domestic is protected from foreign competition by the feds. On the other hand international is in time tested tax avoidance structure to which the domestic business likely heavily subscribes to and may triple that businessness diverting Canadian profits to Ireland. I would say this is likely the case it's what any one would

[rfguysd]

I  will make  an attempt  to show how Telus share price will change as  one considers Telus International ebitda separately from Telus using  a higher ebitda  ratio.  Now  the disclaimer… everyone  should use their own numbers  and their own methology.  Of  course ,  the market will use its own  and  add risk and time

[rfguysd]

I reviewed  some of the numbers  presented and  the  following are errors.   I  will only  update  the table  ….  1st  ---closing  stock  price  should  be  the date  prior to the announcement   not the closing date of  the announcement   ie...  26.8 ==> 26.4   2nd …

[maplak]

That means a dog. Big fat lazy dog with some what divident.Will rather buy IPT prior earnings.They will benefit from covid.

[rfguysd]

I  did  some  nibbing  here.    Remember  the arguments: 1)Telus  is largely undervalued due  to  low evaluation of Telus International with the Telus financial structure.  Telus is currently trading 6x ebitda , Telus intentional should be 12-14x ebitda.   2)Telus is trading 6x ebitda but should be higher ...closer  to 8x. 3

[Dibah420]

"I  did  some  nibbing  here.    Remember  the arguments:" So did I.  Thanks for your calcs.