Canadian operator Telus outlined plans to raise CAD1.3 billion ($1 billion) through a share sale, a move designed to boost investments in 5G networks and broadband connectivity.
Telus said it would sell a total 51.3 million shares to underwriters as part of an equity offering at CAD25.23 each, representing a 3.4 per cent discount on its last close.
The operator revealed it would use the funds to accelerate its 5G rollout, boosting network infrastructure and financing spectrum acquisitions. The company will also accelerate its broadband investment, including construction of its PureFibre network in certain parts of the country.
Telus’ move to step up its network rollout comes shortly after major rival Rogers Communications announced a proposed CAD26 billion tie-up with Shaw Communications, which was also pitched to accelerate 5G in the country.
The market’s other major player, Bell Canada, revealed a similar move to Telus in February, stating it would pump CAD1.2 billion into improving its network coverage and 5G rollout over the next two years.
Telus said approximately CAD500 million to CAD750 million of the proceeds would be earmarked for 2021, dependent on “its ability to ramp up resources and suppliers”. The remaining balance will be used in 2022.
A syndicate of underwriters, led by RBC Capital Markets and CIBC Capital Markets, have agreed to purchase the shares, which will then be sold to the public.