Fri. Feb 23rd, 2024

The Honor Magic Vs is on show at Honor’s stand on the Cellular World Congress in Barcelona.

Arjun Kharpal | CNBC

Honor, a by-product of Chinese language know-how large Huawei, mentioned on Wednesday it’s planning to go public.

“In an effort to meet new strategic objectives, Honor will proceed to optimize its shareholding construction, entice diversified capital, and enter into the capital market by way of IPO (preliminary public providing),” the corporate mentioned in an announcement.

Honor didn’t disclose which nation it could record in.

The transfer to lift capital within the public markets underscores Honor’s aggressive push within the smartphone market because it seems to mount a critical problem to Apple and Samsung within the high-end market.

Huawei was pressured to promote Honor in 2020 to a consortium of consumers, which included the federal government of Shenzhen, the southern Chinese language metropolis the place the corporate is headquartered. That was after quite a few U.S. sanctions on Huawei crippled its smartphone enterprise by reducing the Chinese language tech champion off from crucial applied sciences akin to software program and semiconductors.

Honor was spun off to avoid wasting the model and permit it to proceed to function. Below Huawei, Honor was a midpriced model that discovered success in a handful of markets. However the firm desires to push into the premium tier of the smartphone market the place the likes of Apple and Samsung play.

Honor has the most important market share in China however remains to be a small participant globally because it has but to construct its model. To assist try this, this 12 months, the corporate launched two costly foldable telephones.

The smartphone maker mentioned it could begin to make preparations for the IPO.

“As the corporate begins the IPO preparation course of, the composition of the Board of Administrators will progressively be adjusted, in accordance with the requirements of a listed firm, to embrace higher range for assembly the related governance and regulatory necessities,” Honor mentioned.

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