The world’s no. 2 telecommunications equipment maker, Chinas Huawei Technologies Co. Ltd has been in touch with investment banks about a possible initial public offering, however it has not made any decision about proceeding with a listing. Base on the report of the Wall Street Journal, Huawei had reached out to investments banks for advice on an IPO, which is seen as a way of making itself more transparent and helping it win big contracts in markets like the United States,though it had not chosen any banks and nothing had been decided. One source who is close to the company told Reuters that they have not ruled out the possibility of listing, they have been in touch with banks, yet he think anything has been decided.
For years, Huawei has been looking at the listing, however there has been little progress due to the complicated company share structure and some doubts about whether a listing would actually help dispel suspicion that US lawmakers have towards the company, sources told Reuters. He said that one banking source who declined to be identifies as he was not authorized to speak to the media had been open to the idea of going public every now and then, yet he was unaware of anything happening at the moment. Huawei and the domestic rival ZTE Corp have been successful in selling handsets in the United States, however they have hit roadblocks trying to sell their flagship telecommunications equipment products due to opposition from US lawmakers over security concerns when it barred Huawei from bidding for contracts to build the country’s national broadband network.
Huawei said that the wall street hournal, citing a person familiar with the matter. Huawei began reaching out to banks for IPO advice after being forced to drop a small acquisition due to opposition from the Obama administration. He is leaning towards a listing in the United States, however it is also considering Hong Kong or London.
REFERENCES:
http://gadgets.ndtv.com/telecom/news/huawei-mulling-for-ipo-in-us-sources-275904
