(Yicai Global) Sept. 10 -- China's Transsion Holdings, the leading smartphone maker for the African continent, aims to raise CNY3 billion (USD421 million) from an upcoming listing on Shanghai's new Nasdaq-style Star market.
Known in China as 'Africa's handset king,' Transsion will issue more than 80 million shares, around 10 percent of its total stock, and will announce the share price [SHA:688036] on Sept. 17, according to the prospectus for its initial public offering. The Shenzhen-based firm plans to use the funds raised to boost its liquidity and invest in research and development, plants and mobile internet systems.
Founded in 2013, the relatively unknown handset maker has bypassed the Chinese market to focus on what the African consumer wants: low-cost devices with cameras and long battery life. As a result, its shipments to Africa outstrip global players such as Huawei Technologies and Samsung, making it the continent's best-selling brand with a 48.7 percent market share, according to industry analyst IDC.
In the first half, Transsion raked in net profit of CNY818 million (USD115 million) and revenue of CNY10.5 billion (USD1.5 billion) through the sale of 54.7 million handsets, the prospectus shows.
Between 2016 and 2018, its production grew at an average annual compound rate of just over 28 percent, jumping to 124 million units from 75.6 million. Sales over the same period increased at a yearly rate of 39.5 percent to CNY22.6 billion from CNY11.6 billion.
Globally, Transsion ranks fourth with a 7 percent market share, according to IDC. It focuses on emerging markets such as Africa, South Asia, Southeast Asia, Middle East and South America. It owns three major handset brands, Tecno, Itel and Infinix.