Key Takeaways:
– Smartphone manufacturer Honor secures backing from new investors as IPO draws nearer.
– Major telecommunications company China Telecom leads the group of new investors.
– Honor’s AI-powered Magic7 series of phones launched in China.
– An early 2023 public listing is expected, but no official confirmation has been announced.
Investor Support Builds for Honor’s Upcoming IPO
In a recent development, Chinese smartphone company Honor attracted a new group of investors onto its platform. This development comes as the Huawei spinoff plans on treading the waters of an Initial Public Offering (IPO).
Among the Revenue Backers
Among the newly joined backers, China Telecom stands out as one of the major telecommunications operators in the country. CICC Capital, SDG, an investment fund with ties to an economic zone in Shenzhen, and Chinese venture capital firm Cornerstone also make up the list.
Beyond welcoming these new investors, Honor’s existing partners demonstrated their steady commitment by contributing to a new investment round. This investment was made through an entity dubbed Jinshi Xingyao.
Predicted Changes to the Shareholder Structure
Earlier this year, Honor announced plans to start modifying its shareholder structure in the fourth quarter. This move is seen as a precursor to kickstarting the IPO process “at a suitable time.” However, the company has kept mum about where it plans to list its shares.
Spun Off and Moving Forward
Honor emerged as a separate entity from the Chinese telecommunications titan Huawei in November 2020. This change was the aftermath of Huawei grappling with a series of U.S. sanctions. The parent company has stated that it no longer holds any shares in Honor or has any involvement in its business decision-making process.
Harnessing the Power of AI
In an impressive feat of technological innovation, Honor announced last week that its upcoming operating system will leverage the power of AI to mimic actions on a touchscreen. This means users can order a coffee delivery simply by having their device simulate the process of opening an app.
The company has already put this innovation to work. On Wednesday, Honor launched its Magic7 series of phones, which come equipped with these AI features, in China.
Expanding Market Reach
Honor’s ambition doesn’t stop at its national borders. Data from Counterpoint reveals that nearly a third of Honor’s sales in the first half of this year came from markets outside China. This statistic underlines the company’s successful strides in expanding its international presence.
Expected IPO Announcement
Despite the advances, official confirmation of Honor’s IPO date remains elusive. However, market watchers predict an early 2023 announcement. With new investors backing its operations and its innovative AI-powered phones making waves, Honor is staging a promising run towards its IPO.
As Honor continues to intrigue investors and customers alike with its evolving business strategies and technological innovations, the overall consensus remains that the brand’s journey towards its IPO will be one to watch.