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Huawei Denies Plans to Seek a Stock Market Listing
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China's Huawei says that it has no plans to list its shares on a stock market yet, denying the latest rumor about a possible initial public offering to assuage some of the concerns expressed by US politicians yesterday about its ownership structure.
The gave the clarification in a statement sent to the Global Times, following mounting speculation concerning its listing plans. "We don't have plans to go public in any market," Huawei told the Global Times.
There have been reports that the company had been in talks with investment banks to prepare for a stock market listing.
"Huawei's floatation possibility could not be ruled out, but it won't help the company win more business in the overseas markets like the US, where security concerns have always prevented Chinese firms from gaining big contracts," Tian Ying, Beijing-based principal telecom analyst at market research firm Gartner Inc, told the Global Times Monday.
"For the time being, there remains no urgent need for Huawei to look for an IPO, as the company has little worries about its capital flow," Tian noted, adding that Huawei may consider listing in the future to secure long-term growth momentum.
It's not the first time that the company has looked at options to widen its investor base. Back in 2008, the company cancelled the sale of its handset division due to the ongoing economic crisis at the time. The sale was expected to have raised upwards of US$2 billion for the company at the time.
Rival telecoms vendor, ZTE is currently listed in both Shenzhen and Hong Kong.
On the web: People's Daily
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