Chinese phone manufactuer Transsion, a rival to Xiaomi in Africa, is planning to list on the Shanghai new tech board, said China’e biggest state-owned brokerage on Friday.
Citic Securities filed a report Friday confirming that Transsion had completed a mandatory three-month counseling session for its initial public offering (IPO) on Shanghai’s new Science and Technology Innovation board. The brokerage, which is underwriting the IPO, stated in the report that the Chinese phone maker meets listing requirements. Transsion was not available for comment.
Founded in Hong Kong in 2006, Transsion was one of the first phone manufacturers in Africa and is a leader in its feature phone market. Transsion’s three brands—Tecno, Infinix, and Itel—comprised 58.7% of market share by units sold in 2018, according to the latest figures from research firm International Data Corporation (IDC). It also leads the smartphone sector with 34.3% share, followed by Samsung (22.6%) and Huawei (9.9%) respectively.
Xiaomi is also eyeing the phone market in Africa. In January it set up a business unit for the region, aiming to boost its sales on the continent. The company is now turning its attention to growth opportunities in Africa after launching in Spain, France and Italy, said Wang Xiang, Xiaomi senior vice president, at the Mobile World Congress in Barcelona in late February.
The news comes as the Shanghai Stock Exchange began accepting IPO applications for its new tech board on Monday. Some 11 technology companies have already announced their filings, according to state-owned Chinese media Securities Daily, and the first batch of listings is expected to come as early as mid-June.
Pre-listing counseling was implemented in 2006 as a mandatory procedure for filing an IPO in China to ensure that companies are informed about legal obligations, relevant national laws, and regulatory guidelines. Qualified agencies assist companies with compliance in corporate structures and management systems, particularly concerning business operations, information disclosures, and accounting practices.