(CTN News) – Honor, a subsidiary of Chinese tech giant Huawei, made an announcement on Wednesday regarding its plans to go public.
The company expressed its desire to enhance its shareholding structure, attract diverse sources of capital, and enter the capital market through an initial public offering (IPO) in order to achieve its new strategic goals. However, Honor did not disclose the specific country where it intends to list its shares.
Honor’s bold endeavor to raise funds in the public markets highlights its determined pursuit in the smartphone industry, aiming to present formidable competition to Apple and Samsung in the premium market segment.
In 2020, Huawei was compelled to divest Honor to a group of purchasers, which encompassed the government of Shenzhen, the city in southern China where the company is based.
This decision came in the wake of multiple sanctions imposed by the United States on Huawei, severely impacting its smartphone business by severing access to vital technologies like software and semiconductors.
To ensure the survival of the brand and enable its ongoing operations, Honor was separated as an independent entity.
While operating under Huawei,
Honor had established itself as a moderately priced brand that achieved success in a few select markets.
However, the company now aims to venture into the high-end segment of the smartphone market, where renowned players like Apple and Samsung dominate.
Although Honor holds a significant market share in China, it remains a relatively minor player on the global stage due to its limited brand recognition. In an effort to address this, the company recently introduced two costly foldable phones, aiming to bolster its brand presence and reputation.
Honor, a smartphone manufacturer, plans to go public through a Huawei IPO to raise capital for expansion and investment in new technologies. The company will modify its Board of Directors to meet governance and regulatory obligations and increase diversity.
Going public will allow Honor Huawei to access a wider pool of investors and showcase its growth potential in the competitive smartphone market. This decision is positive for the company and stakeholders, providing capital for growth and allowing investors to participate in its success.