Chinese smartphone company Honor, a spinoff from Huawei, has secured backing from new investors as it prepares for an initial public offering (IPO). The company’s new investors include China Telecom, CICC Capital, Cornerstone, and SDG. Honor’s existing partners also made a new investment round through an entity called Jinshi Xingyao.
Honor plans to start changing its shareholder structure in the fourth quarter, after which it will begin the IPO process “at a suitable time.” The company has not yet announced where it will list.
Since spinning off from Huawei in November 2020 due to U.S. sanctions, Honor has focused on expanding its global presence. In the first half of this year, just under one-third of Honor’s sales came from outside China, according to Counterpoint.
Last week, Honor revealed that the next version of its operating system can use AI to mimic actions on a touchscreen, such as opening an app to order coffee delivery. The company also released its new Magic7 series of phones that can use the AI features in China.
As Honor readies for its IPO, the company is well-positioned to capitalize on the growing demand for AI-powered smartphones and expand its reach in global markets.