Huawei Technologies Co, the world's second largest telecommunications equipment maker, said Monday it has no listing plans yet, denying the latest rumor about a possible initial public offering to facilitate its overseas business.
The Shenzhen-based company gave the clarification in a statement sent to the Global Times Monday, following mounting speculation concerning its listing plans.
Huawei has been in touch with investment banks for advice on its IPO, in a bid to make itself more transparent for business in markets such as the US, the Wall Street Journal reported Thursday, citing unnamed sources.
"We don't have plans to go public in any market," Huawei told the Global Times.
The Chinese telecom gear maker with a complex share structure has for years been queried about its IPO plans, but there is still no official confirmation of its listing. Its cross-town rival ZTE Corp is currently listed in both Shenzhen and Hong Kong.
"Huawei's floatation possibility could not be ruled out, but it won't help the company win more business in the overseas markets like the US, where security concerns have always prevented Chinese firms from gaining big contracts," Tian Ying, Beijing-based principal telecom analyst at market research firm Gartner Inc, told the Global Times Monday.
China's top telecoms gear makers including Huawei and ZTE should be shut out of the US market as potential Chinese State influence on them poses a security threat, the US House of Representatives' Intelligence Committee warned in a draft report, Reuters reported Monday.
"For the time being, there remains no urgent need for Huawei to look for an IPO, as the company has little worries about its capital flow," Tian noted, adding that Huawei may consider listing in the future to secure long-term growth momentum.
Huawei is banking on the enterprise network field as its new growth engine, which requires considerable capital injection, Tian said, pointing to the potential IPO plan by the company for its future business development.
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