Transsion, the Chinese manufacturer of mobile phones is now a prominent name in an Initial Public Offering (IPO) on Shanghai’s STAR Market.
The larger African market of Transsion led the company to grow public by STAR. The company is also supporting venture funding in African startups.
Transsion issued 80 million A-shares at an opening price of 35.15 yuan (? $5.00) to raise 2.8 billion yuan (or ? $394 million). With A-shares, the Transsion share will now be available only by Mainland China citizens.
Transsion’s STAR Market listing application available on the Shanghai Stock Exchange’s website and the IPO prospectus is downloadable.
Transsion plan list is quite impressive after the IPO listing. Its 1.6 billion yuan (or $227 million) investment will reflect on its STAR Market raise on bringing more phone assembly hubs. For research and development, the firm is going to spend 430 million yuan ($62 million).
To support its African sales network, Transsion maintains a manufacturing facility in Ethiopia. The company is planning to build an industrial park and R&D facility in India for the manufacture of phones to Africa.
The listing of STAR market will be a significant factor in the growth of Beijing as a center of tech startups to raise public capital.
Transsion has successfully made its way in the public market despite its reduction in revenue in 2019 compared to last year. If the net profit in 2018 was 677 million, in 2019, it’s 654 million.
As part of elevating its biggest market, Africa, Transsion keeps a manufacturing facility in Ethiopia. The company recently announced plans to set up an industrial park and R&D facility in India for the manufacture of phones to Africa.
In Afric, it holds 54% of the feature phone market. The market in Africa is expanded through its brands, Tecno, Infinix, and Itel. It is leading globally, as well. Transsion sold 124 million phones globally in 2018.
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