The Strategist

Honor seeks funding in global market

04/26/2022 - 09:17

China's second-largest cellphone maker Honor Device Co. is seeking new sources of financing ahead of an IPO in 2022, Bloomberg says.
Honor Device Co. wants to raise capital to expand ahead of its initial public offering, sources familiar with the discussions told the agency.

According to them, former Huawei Technologies Co. is in talks with investors about a round of pre-IPO financing. The company intends to raise foreign funding to simultaneously bolster its image as an international company, while distancing itself from Huawei and the risk of China-related sanctions.

Foreign investors, on the other hand, have rejected Honor's desire for a valuation of more exceeding $45 billion and are afraid of prospective US sanctions, according to sources.

Honor requires additional funding to develop its domestic retail and e-commerce activities, as well as its global footprint.

According to one of the insiders, the company is likely to opt for a Chinese domestic listing. However, no final decision has been reached, and a dual listing is still being considered.