Telus to raise $1.3B in stock sale amid investment boosts in 5G, broadband

Telus Corp said on Thursday it would raise $1.3 billion through an equity offering as the Canadian telecom company boosts investments in broadband connectivity and 5G.

The company said it would sell 51.3 million of its shares to underwriters at $25.35 apiece, a 3.4 per cent discount to the stock’s last close on the Toronto Stock Exchange.

Telus intends to use the net proceeds to speed up its broadband capital investment program, including the build-out of its PureFibre infrastructure in Alberta, British Columbia and Eastern Quebec, as well as an accelerated roll-out of its national 5G network.

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RBC Capital Markets and CIBC Capital Markets are the underwriters, while BMO Capital Markets, Scotiabank and TD Securities Inc the joint book runners, the company said.

1:50 Telus issues apology for issues with B.C. COVID-19 vaccination centre phone lines

U.S.-listed shares of the company were down 3.6 per cent in extended trading.

The offering is expected to close on or about March 31.

($1 = 1.2610 Canadian dollars) (Reporting by Tiyashi Datta in Bengaluru; Editing by Shinjini Ganguli and Sriraj Kalluvila)