Canadian operator Telus said it looking to raise CAD 1.3 billion worth of gross proceeds through the sale of 51.3 million shares priced at CAD 25.35 per unit. The operator has signed an agreement with a group of underwriters led by RBC and CIBC, together with BMO, Scotiabank and TD Securities as joint book runners. The company has also granted a greenshoe of almost 7.7 million more shares, to cover possible over-allotments. If exercised in full, the offering would be worth CAD 1.5 billion in gross proceeds.
Telus said it will use the money raised to strengthen its balance sheet but also, and mainly, push its broadband capital investment programme, including the build-out of Telus PureFibre infrastructure in Alberta, British Columbia and Eastern Quebec, as well as an accelerated roll-out of the company’s national 5G network.
The company expects CAD 500-750 million of the accelerated capital investments will be earmarked for 2021, over and above its previous target of CAD 2.75 billion, dependent upon its ability to ramp up resources and suppliers. The balance, from CAD 750 million to CAD 1 billion, will be brought forward into 2022, in addition to Telus’ planned annual capex of CAD 2.75 billion.
