Chinese smartphone company Honor, a spinoff from Huawei, has secured backing from new investors as it prepares for an initial public offering (IPO). The new investors include China Telecom, CICC Capital, Cornerstone, and SDG. Honor plans to start changing its shareholder structure in the fourth quarter, after which it will begin the IPO process “at a suitable time,” although the company has not disclosed where it will list.
Honor spun off from Huawei in November 2020 after the parent company faced U.S. sanctions. Huawei has stated that it does not hold any shares in Honor or have involvement in its business decisions. Last week, Honor unveiled the latest version of its operating system, which uses 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 in China, which can utilize the AI features.
According to Counterpoint, just under one-third of Honor’s sales came from outside China in the first half of this year.