Transsion Holdings’ Journey to an IPO: Strengths and Challenges
Overview:
Transsion Holdings, the top mobile phone OEM in the African market, plans to go public and list its shares on Shanghai’s tech-focused STAR Market. The company, which owns the brands infinix, itel, and Tecno, aims to raise RMB 3 billion (approx. US$426 million) from the initial public offering (IPO).
Despite its dominance in the African mobile phone market and a solid operating revenue of over RMB 20 billion (approx. US$3.5 billion) in 2018, Transsion’s road to an IPO has not been easy. After Transsion Holdings submitted its IPO application to the Shanghai Stock Exchange, it received about 62 official queries from the regulator in May. This resulted in Transsion missing out on joining the first batch of firms to debut on the STAR Market in July. So far, Transsion’s IPO application has been approved by SSE, and it is now waiting for clearance from the China Securities Regulatory Commission. Investors still have concerns over the sustainable development of Transsion in the increasingly intense mobile phone market competition. In this short report, we analyze Transsion’s strengths as well as the challenges it faces.
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