Honor, Huawei’s Offshoot, Announces Plans for Initial Public Offering (IPO)

“Honor,” a company founded by the Chinese tech giant Huawei, revealed plans on Wednesday to go public.

In a statement, Honor expressed, “In pursuit of new strategic objectives, Honor will actively reshape its ownership structure, attract diverse capital, and initiate its entry into the capital market through an initial public offering (IPO).”

The company did not disclose the specific stock exchange where it intends to be listed.

This strategic move is geared towards enhancing capital in the public domain, fortifying Honor’s robust presence in the smartphone market as it endeavors to challenge established players such as Apple and Samsung in the upscale electronics market.

In 2020, Huawei was compelled to offload Honor to a consortium of buyers, including the Shenzhen government in southern China, where the company’s headquarters is situated. This decision was prompted by a series of U.S. sanctions that significantly impacted Huawei’s smartphone business by isolating it from crucial technologies like software and semiconductor components.

Honor was established to revive the brand and enable its continuous operations. Under Huawei’s umbrella, Honor occupied a mid-range market position and experienced success in select markets. However, the company is now eyeing entry into the premium market segment to compete directly with industry giants like Apple and Samsung.

While Honor currently commands a substantial market share in China, its global footprint is relatively modest, necessitating brand establishment on a broader scale. To facilitate this objective, the company launched two high-priced foldable phones earlier this year.

The smartphone manufacturer affirmed its intention to commence preparations for the IPO, gradually adapting its board structure to incorporate greater diversity, aligning with governance standards and pertinent regulatory requirements.