After Honor, Huawei is reportedly preparing for IPO

News regarding Huawei suggests that the company has started preparing for an IPO (initial public offering). Though the tech giant hasn’t officially commented on this matter, the latest input has a lot to reveal about it.

So far, Huawei’s CEO Ren Zhengfei refuses to see the company as a publicly traded sector and rather focuses on developing solutions that can contribute to efficient user experience. However, if it is about China’s welfare, then we may see Huawei preparing for the IPO.

The Chinese tech giant significantly represents both innovation as well as technological independence. A good example of this scenario is the Mate 60 5G handset equipped with SMIC advanced chipset, which hyped Huawei’s growth despite U.S. sanctions.

Although one cannot deny the fact that foreign regulations led to a major decline in the company’s growth rate. Huawei’s profit margin fell to 7% in 2022 with an annual net profit of $5.1 billion. This value would rise by $128 billion in the time ahead.

Lenovo’s ex-chief technology officer – Ni Guangnan predicted in 2019 that Huawei would be worth $1.3 trillion in the future. At that time, Apple was swinging at the top of the market with a $1 trillion net profit.

Perhaps, Chinese investors can help Huawei boost its growth in the market share and profit race, just like SMIC. The chip supplier had settled with $6 billion after being removed from New York in 2019. Yet by selling shares in Shanghai, the company gained a net profit of $30 billion by the end of this year.

Thus, Huawei IPO may lead to a similar outcome and it can accelerate the overall growth of the Chinese market. Eventually, it will also help the company to give a tough spot to its rivals in the global smartphone market.

(Source)