Despite the challenges posed by U.S. sanctions, there are discussions about the possibility of Huawei, a leading technology company, going public. The recent success of the Huawei Mate 60 Pro has prompted founder Ren Zhengfei to reconsider his previous dismissal of this idea. He now states that he is open to it if it aligns with China’s national interest. This development comes after Huawei’s former sub-brand, Honor, expressed its own plans to go public, further fueling speculation within the industry.
Analysts have attempted to estimate the potential value of Huawei in the event of an initial public offering (IPO). Based on projected earnings for 2022, which are expected to reach $5.1 billion, and applying a similar earnings multiple to Apple’s valuation (25x), Huawei’s estimated value could be approximately $128 billion. However, back in 2019, former Lenovo Chief Technology Officer Ni Guangnan believed that the company could be even more valuable, placing its worth at an astounding $1.3 trillion. For comparison, Apple’s current market capitalization stands at $3 trillion.
Chinese investors, who have shown a strong interest in tech stocks, are expected to enthusiastically embrace a Huawei IPO. This move would not only represent a significant milestone for the company but also signal the failure of U.S. sanctions. If Huawei decides to go public, it would have multiple stock exchanges to consider, including the Shanghai Stock Exchange, the Beijing Stock Exchange, and the Shenzhen Stock Exchange.
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The source of the article is from the blog bitperfect.pe