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Honor, Huawei’s Smartphone Offshoot, intends to go Public

Honor, a Huawei spinoff, has announced its plans to go public, revealing its intention to optimize its shareholding structure, attract diverse capital, and enter the capital market through an initial public offering (IPO). While the company did not disclose the specific country for its listing, the move underscores Honor’s strategic goals and aggressive push in the smartphone market.

Huawei was compelled to sell Honor in 2020 due to various U.S. sanctions that hampered its smartphone business. The sale involved a consortium of buyers, including the government of Shenzhen, where Huawei is headquartered. Honor, initially a mispriced brand under Huawei, seeks to challenge Apple and Samsung in the high-end smartphone market after the spinoff.

While Honor currently holds the largest market share in China, it remains a relatively small player on the global stage, with ambitions to establish itself as a premium brand. To achieve this, the company recently launched two high-end foldable phones.

The IPO preparation process will involve adjustments to the composition of the Board of Directors to meet the standards of a listed company, ensuring greater diversity for governance and regulatory compliance. Honor’s move to go public reflects its determination to secure capital and position itself as a formidable competitor in the smartphone industry.

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