In a significant move signaling its evolution post-separation from Huawei Technologies, Honor, the renowned handset maker, announced its preparation for an initial public offering (IPO). This strategic decision comes on the heels of the company’s sale by Huawei in 2020, a move prompted by U.S. sanctions that reshaped the technology landscape.
The IPO is viewed as the next pivotal step in Honor’s trajectory, building on the remarkable strides made in the past three years. During this period, Honor has not only solidified its market position but has also showcased robust performance indicators, particularly in China and Europe.
Honor, which refrained from specifying the IPO’s time frame or location, is making meticulous preparations to go public. The aim is to attract diverse capital and further strengthen its financial foundation for future endeavors.
In the third quarter of this year, Honor emerged as the leader in handset shipments in China, selling an impressive 11.8 million units and securing the top spot. Last year, it ranked as the second-largest seller in China and the fifth-largest brand by sales in Europe in Q3. The company’s market share in China stood at a formidable 18% during the same period.
Following its independence from Huawei, Honor has flourished under a consortium of over 30 agents and dealers. This shift allowed the company to operate autonomously, navigating the challenging tech landscape and expanding its global footprint.
The last three years have been transformative for Honor, marked by rapid strategic and business growth. Corporate governance and management improvements have propelled the company’s overall competitiveness, setting the stage for a successful IPO.
As part of its preparation steps, Honor is set to optimize its shareholding structure, inviting diversified capital that aligns with its future vision. The board composition will undergo gradual adjustments to meet the stringent standards expected of a listed company, emphasizing governance and regulatory compliance.
Celebrating its third-year anniversary post-independence, Honor has recorded nearly 200% sales growth in overseas markets. Counterpoint’s Q3 report underscores Honor’s remarkable growth in Europe, distinguishing itself as the only brand among the top five to achieve year-on-year growth. Domestically, in the highly competitive Chinese market, Honor claims the throne in the foldable market and commands a significant overall market share, according to the Q3 analyst report.
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