The speculation around an IPO from Honor, the smartphone maker spin-off from Huawei, has kept the market guessing on the when, where, and how. With the news that came in the last few days of 2024, it seems the state-backed tech company is now one step closer to going public.
On 28 December last year, Honor announced that it had completed its shareholder restructure, which began in Q4 of 2024 and is officially in the process of an IPO. It also changed its name from “荣耀终端公司” (lit. Honor Devices Co.) to “荣耀终端股份有限公司” (lit. Honor Devices Co. Ltd.). According to regulations, after completing its shareholder restructuring, Honor is eligible to enter the process of going public.
4 years after its spin-off from Huawei, pundits have found that Honor is finally coming into its own after annual new releases and continued growth. Honor ranked number 3 among domestic brands in Q3 sales by smartphone units sold, with 69.1 million smartphones, growing 4% year-on-year and trails behind only Vivo and Huawei. Similarly, its 15% market share also places it behind Vivo and Huawei at number 3.
The tech company also reiterated its intention for an IPO, instead of a reverse takeover to go public. However, the company has still been silent about when and where it will launch its IPO, and will carefully choose the right place at the right time. Previously unconfirmed reports said Honor was planning to go public in Shenzhen in 2024 with a 200 billion RMB (27.40 billion USD) pre-IPO.
While going public, the company is also going global. On 31 December, Honor announced that its sales overseas have now equalled that of China, each weighing 50% in its December results. This might increase the odds of it going public in Hong Kong, a common stop for brands to gain more global credibility. With a rumoured current valuation of 300 billion RMB (40.98 billion USD), it will certainly be closely watched by both tech insiders and the investment sector.
