Apple & Samsung Step aside, There’s a New Chinese Champion Wanting to IPO! Tech – 4 hours ago

Jakarta, CNBC Indonesia – Honor, a brand that was previously known as Huawei’s “cheap” cellphone, is trying to find capital so it can compete better against Apple. After leaving Huawei, Honor plans to hold an initial public offering (IPO) CNBC International.

Three years ago, Huawei was practically forced by US sanctions to sell its subsidiary Honor. Honor is now the market leader in China and is also rapidly gaining market share in Europe.

“To achieve new strategic goals, Honor will continue to optimize its shareholder structure, attract diversified capital, and enter the capital market through an IPO,” said Honor without specifying the IPO destination country, quoted by CNBC International.

The move to raise funds on the stock exchange shows Honor’s aggressiveness in increasing market share in tight competition with iPhones made by Apple and Samsung, in the premium cellphone market.

Huawei was forced to sell Honor in 2020 to a consortium, including the Shenzhen regional government. The trigger was US sanctions which made it difficult for Huawei to buy important technology, such as software and semiconductors.

This step allows Honor to continue operating after being separated from Huawei. In the past, Honor was known as the “cheap” version of Huawei cellphones. Honor is now targeting the premium cellphone market, competing with Apple and Samsung.

Now, Honor is the leader of the HP market in China but is still a small player in the global market. To increase penetration in the global market, this year Honor released two foldable cellphones.

“Along with preparations for the IPO, the composition of the company’s board of commissioners has been adjusted to comply with public company regulations,” said Honor.

As part of its IPO preparations, Honor also overhauled its Board of Directors to ensure diversity and compliance with regulatory standards required for public companies.

This restructuring is an important step in the company’s strategy to secure multiple funding sources and strengthen its position in the competitive technology industry.

[Gambas:Video CNBC]

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