Chinese language cell phone firm Honor issued an inner announcement on Wednesday stating that the previous Huawei sub-brand plans to optimize its fairness construction and appeal to diversified capital by means of an preliminary public providing (IPO), as reported by native media outlet Icsmart. Honor has not introduced a timeframe or a location for the upcoming itemizing.
Why it issues: The announcement comes three years after Huawei was successfully compelled to promote Honor in November 2020 to assist the sub-brand bypass the restrictions imposed upon Huawei by US sanctions. Purchased by a state-owned enterprise in Shenzhen, Honor has since emerged as a number one telephone model within the Chinese language market.
Particulars: As a part of its preparations for the IPO, Honor has made changes to its board of administrators: Wu Hui will function the brand new chairperson, whereas the previous chair Wan Biao turns into vice chairperson.
- Following Xiaomi and Transsion, Honor might change into the third home telephone firm to go public, based on Jiemian. Xiaomi is listed on the Hong Kong inventory alternate and at the moment holds a market capitalization of HKD 377.8 billion ($48.87 billion), whereas Transsion’s market capitalization is valued at RMB 95.6 billion ($13.36 billion).
- Ever since Honor’s spin off from Huawei, there was hypothesis within the trade a couple of potential itemizing for the handset maker, together with the potential for a backdoor itemizing by means of Transsion.
- Honor resumed allocation of shares round June of this yr, primarily focusing on distribution companions on the municipal stage in every province, based on the aforementioned report from Jiemian. Moreover, Honor has initiated an worker inventory allocation program, with excessive expectations for the corporate’s itemizing amongst its workers.
- On the finish of 2022, Honor accomplished one other spherical of strategic financing, including six new shareholders, with main display-panel trade participant BOE amongst them.
- The newly appointed chair, Wu Hui, beforehand served within the Shenzhen municipal committee workplace, earlier than later being transferred to work within the Hubei provincial authorities and the municipal authorities in Xianning, a metropolis in Hubei. In April 2021, Wu Hui returned to Shenzhen and took on the function of chairman of Shenzhen Environmental Water Group.
- Vice chair Wan Biao was as soon as a key determine in Huawei’s shopper enterprise division. He joined Huawei in 1996 and held numerous positions similar to president of Huawei’s wi-fi product line, president of its terminal firm, and COO of its shopper enterprise division. In November 2020, Wan Biao joined Honor and have become its chairperson.
Context: Within the third quarter of 2023, Honor secured the highest spot within the home smartphone market with a cargo share of 19.3%, based on analysis agency IDC.
- Throughout July to September of this yr, Honor launched three foldable gadgets, particularly the Magic V2, V Purse, and Magic Vs2, aiming to determine a robust presence within the high-end telephone phase.
- Within the third quarter of 2023, the Chinese language foldable smartphone market continued its speedy progress pattern, reaching a cargo quantity of 1.96 million models, a rise of 90.4% year-on-year, based on the identical report from IDC. Honor captured a market share of 15.1%, rating fourth on this phase.
Associated
