Honor, a subsidiary of Chinese tech corporation Huawei, declared on Wednesday their intention to become publicly listed. This move to gather funds from public investors further emphasizes the company's ambition to become a major rival to Apple and Samsung in the luxury smartphone market.The separation of Honor from Huawei was prompted by the U.S. government's economic punishments which adversely affected Huawei's smartphone business back in 2020.
Honor, a subsidiary of China's technology firm Huawei, declared on Wednesday that it is making preparations for a public offering.The statement from Honor highlighted that to pursue its strategies, it intends to adjust its ownership proportion, draw on a wider range of capital, and list its shares on the stock exchange via an IPO (initial public offering).Honor did not reveal the market in which it will list.
Honor is making a strong drive in the mobile phone market, seeking to compete with Apple and Samsung in the high-end market. In 2020, Huawei needed to offload Honor due to U.S. sanctions that essentially curbed their smartphone business by stopping them from using key technologies such as computer programs and semiconductors. Honor was spun off in order to spare the brand and let it survive. Since Honor was previously a mid-range brand, it has achieved success in a few countries. Now, they want to move into the more expensive range of cell phones. Honor has the highest share of the Chinese market and is still a very small player worldwide as they are yet to build their brand name. To help do that, they have launched two pricey foldable phones this year. Honor has declared that they will begin the IPO process. They further stated that the content of the Board of Directors will be changed in compliance with the criteria of a company listed on the market, allowing for more diversity that is mandated from the regulatory side.
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