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China’s No. 2 Phone Maker Seeks New Funding Ahead of 2022 IPO

  • Honor, once a Huawei subsidiary, aims to go public soon
  • Chinese company counts state-owned firms as key shareholders
Honor 60 smartphone at a Huawei store.

Honor 60 smartphone at a Huawei store.

Photographer: VCG/Getty Images

Chinese smartphone maker Honor Device Co. is seeking to raise expansion capital ahead of an initial public offering as early as this year, people familiar with the matter said.

The former Huawei Technologies Co. arm is in talks with investors about a pre-IPO round of financing, according to the people, who asked not to be named as the plans aren’t public. It wanted to bring in foreign funding to burnish its image as an international company while distancing itself from Huawei and the risk of China-related sanctions. But overseas investors balked at Honor’s asking valuation of more than $45 billion and remain wary about future U.S. restrictions, the people said.