The Shenzhen-based smartphone maker is looking to “continue to optimise its shareholding structure, attract diversified capital, and enter into the capital market through an IPO,” according to a notice issued by Honor’s board on Wednesday.
No financial details, location or timetable for the planned transaction were released.
As the company begins the IPO preparation process, it will make changes to the composition of its board of directors “to embrace greater diversity for meeting the relevant governance and regulatory requirements”, the notice said.
Huawei smartphone spin-off Honor said to name new chairman for potential IPO
Huawei smartphone spin-off Honor said to name new chairman for potential IPO
Honor’s ascent to the top of China’s smartphone vendor rankings has been attributed by analysts to its diverse portfolio of handsets, bricks-and-mortar retail expansion via partners, and release of competitively-priced new models.
Honor, which celebrates its third anniversary this month as an independent company, reclaimed the top smartphone vendor spot in mainland China last quarter with a market share of 18 per cent and total shipments of 11.8 million units, according to data from research firm Canalys.
Honor was followed closely by Oppo, Apple and Vivo, each with a 16 per cent market share, and then Xiaomi, with a 14 per cent share of the China market in the third quarter, according to Canalys.
Honor last led the market in the first quarter of 2022, with a 20 per cent market share and total shipments of 15 million units.
Honor also achieved 8 per cent growth in the European market as the only brand among the top five to grow year on year, according to a separate report by Counterpoint Research this week.
The consortium, Shenzhen Zhixin New Information Technology, was founded by Shenzhen Smart City Technology Development Group, which counts state-owned investment firms in the southern tech hub as its main shareholders.