After splitting from Huawei, Honor plans to go public

Honor, which separated from Huawei in 2020, is planning to go public to diversify its funding after becoming China's leading smartphone vendor in Q3. Honor's board issued a notice that the Shenzhen-based smartphone manufacturer is planning to optimise its shareholding structure, attract diverse capital, and enter the capital market through an IPO. It will also make changes to its board of directors to ensure compliance with regulatory requirements.  

The board will be restructured to embrace greater diversity. The smartphone manufacturer has announced that Wu Hui will be the new chairman of its board, who will replace Wan Biao. Biao will now serve as the vice-chairman.  

Reports also suggest that Honor brought Wu, formerly the chairman of the Shenzhen Water and Environment Group, on board to speed up the company's efforts to pursue a public listing. 

Analysts suggest that Honor's rise to the top of the Chinese smartphone vendor rankings can be attributed to its diverse portfolio of handsets, expansion of brick-and-mortar retail locations through partners, and the launch of new models at competitive prices. 

According to data from the research firm Canalys, this month, Honor regained the top spot in mainland China's smartphone vendor ranking last quarter, with a market share of 18% and total shipments of 11.8 million units. Interestingly, Honor was the only brand among the top five to achieve growth, with an 8% increase in the European market year on year, as per a report by Counterpoint Research this week. 

With respect to India market, Honor, which slowed down its efforts last year, recently partnered with HonorTech, a wholly Indian entity, led by ex-Realme CEO Madhav Sheth, to bring new products in the market. Earlier this year, HonorTech launched the Honor 90 smartphone in the Indian market.