After conquering the African smartphone market, Tecno, Infinix and itel smartphones maker, Transsion Holding has finally disclosed plans for its initial public offering.
in statement released earlier today, Shenzhen-based Transsion Holdings said it is listing on the Shanghai STAR market.
The Shanghai Stock Exchange STAR market is China’s Nasdaq-styled exchanged aimed at encouraging tech companies to easily list their shares on the Shanghai bourse under less rigorous conditions required on the main listing board.
Spokesperson to the Shenzhen company told TechCrunch in an emailed statement that:
“The company’s listing-related work is running smoothly. The registration application and issuance process is still underway, with the specific timetable yet to be confirmed by the CSRC and Shanghai Stock Exchange.”
He also hinted that after the successful listing Transsion will will spend 1.6 billion yuan or $227 million on building more phone assembly hubs and around 430 million yuan or $62 million on research and development, including a mobile phone R&D center in Shanghai.
Transsion is not just Africa’s largest phone maker, but it has recently aimed for the Indian market where it has constructed a manufacturing park to produce smartphones for the local and African market.
The maker of Tecno, Infinix and itel smartphones also has a manufacturing hub in Ethiopia, its first in the continent where it currently commands about 56% of the total market share according to data released by mobile phone research company, Counterpoint.
The Transsion initial public offering, IPO, is significant for many reasons. First is that the company will be raising a whopping sum of $426 million which is about N154 billion in real time forex conversion. The company has in the past raised about $426 million in capital and has since been a profit making venture.
According to its IPO prospectus, the firm generated 22.6 billion yuan or $3.29 billion in revenue in 2018, up from 20 billion yuan from a year earlier.
However, Transsion said its global net profit for the year slid to 654 million yuan, down from 677 million yuan in 2017, according to the firm’s prospectus.
The prospectus said Transsion sold 124 million phones globally in 2018 and could beat its estimates for 2019.
The listing is expected to give the company a stronger fire power to strengthen its market share in a market where Samsung, HMD Global’s Nokia and Huawei are fighting to get sizeable bites.