Jakarta, CNBC Indonesia – After leaving Huawei, Honor plans to sell its shares on the stock exchange. The brand that was previously known as Huawei’s “cheap” cellphone is looking for capital so that it can compete better against Apple.
Honor plans to hold an initial public offering (IPO) CNBC International citing Honor’s press release released on Wednesday.
“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.
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.
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2023-11-24 13:00:00
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