Huawei gives IPO serious thought

Huawei gives IPO serious thought

Summary: The Chinese telecoms giant reportedly reaches out to banks for listing advice, as it strives to make itself more transparent to improve its odds of winning business in some overseas markets.

SHARE:

China's Huawei is reportedly considering listing itself and has reached out to banks for advice, as part of efforts to raise its transparency, and improve its chances of winning contracts in markets like the United States.

In a report Thursday, the Wall Street Journal (WSJ) said Huawei's conversations with banks involved advice on how and where it might be able to list, and the type of disclosures it would need to proceed with a initial public offering (IPO), citing people familar with the outreach.

There is no timetable set for the plans, and the company is leaning towards a U.S. listing over Hong Kong or London, it noted.

Huawei spokesman William Plummer said in the article, the company did not comment on market rumors, but "if and when such a thing happened it would be when it makes commercial sense".

According to WSJ, Huawei began to reach out to banks for IPO advice after it was forced to give up on a small acquisition early last year amid opposition from U.S. government.

Last week, Huawei had commented it was considering a future listing in Australia within 10 years, which it hoped would dispel any concerns over the company and China. It has been banned from tendering for work in Australia's National Broadband Network (NBN) over national security concerns.

The Chinese firm is alsounder scrutiny in markets such as the United States, which has been investigating claims that Huawei and its Chinese counterpart ZTE are linked to the country's military and are involved in cross-border cyber espionage and attacks.

Huawei is a private company, which is wholly-owned by its employees.

 

Topics: Tech Industry, Networking, Telcos

About

Loves caption contests, leisurely strolls along supermarket aisles and watching How It's Made. Ryan has covered finance, politics, tech and sports for TV, radio and print. He is also co-author of best seller "Profit from the Panic". Ryan is an editor at ZDNet's Asia/Singapore office.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

0 comments
Log in or register to start the discussion