The Honor Magic Vs is on display at Honor’s stand on the Mobile World Congress in Barcelona.
Arjun Kharpal | CNBC
Honor, a derivative of Chinese technology giant Huawei, said on Wednesday it’s planning to go public.
“With the intention to meet recent strategic goals, Honor will proceed to optimize its shareholding structure, attract diversified capital, and enter into the capital market through IPO (initial public offering),” the corporate said in an announcement.
Honor didn’t disclose which country it might list in.
The move to boost capital in the general public markets underscores Honor’s aggressive push within the smartphone market because it looks to mount a serious challenge to Apple and Samsung within the high-end market.
Huawei was forced to sell Honor in 2020 to a consortium of buyers, which included the federal government of Shenzhen, the southern Chinese city where the corporate is headquartered. That was after quite a few U.S. sanctions on Huawei crippled its smartphone business by cutting the Chinese tech champion off from critical technologies resembling software and semiconductors.
Honor was spun off to avoid wasting the brand and permit it to proceed to operate. Under Huawei, Honor was a midpriced brand that found success in a handful of markets. But the corporate desires to push into the premium tier of the smartphone market where the likes of Apple and Samsung play.
Honor has the most important market share in China but remains to be a small player globally because it has yet to construct its brand. To assist do this, this yr, the corporate launched two expensive foldable phones.
The smartphone maker said it might begin to make preparations for the IPO.
“As the corporate starts the IPO preparation process, the composition of the Board of Directors will regularly be adjusted, in accordance with the standards of a listed company, to embrace greater diversity for meeting the relevant governance and regulatory requirements,” Honor said.
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