Huawei has consistently attracted attention in the investment world due to its leading position in the technology industry. However, with its unique internal ownership model, many investors wonder whether they have opportunities to access Huawei’s shares. Let’s explore the potential for an IPO and how to invest in this global technology giant.
1. Overview of Huawei
Founded in 1987, Huawei initially specialized in providing private branch exchange (PBX) solutions, helping businesses and customers build fixed-line telephone networks across multiple offices. It wasn’t until the early 21st century that Huawei gradually shifted toward mobile devices, starting with hands-free headsets in 2003 and launching its first mobile phone in 2004.
In 2009, Huawei introduced its first smartphone powered by the Android operating system. Within just three years, the company rose to become the world’s third-largest mobile phone manufacturer. By Q4 2012, Huawei held a 4.6% market share, trailing only behind industry giants Samsung and Apple.
A major breakthrough came in 2018 when Huawei surpassed Apple in global sales rankings. From Q1 2018 to Q2 2020, Huawei led smartphone shipments in 7 out of 10 quarters. In 2019 alone, Huawei sold 240 million devices, far outpacing Apple’s 189 million units. However, this rapid growth slowed in 2020 due to external pressures.
In 2019, Huawei faced sanctions from the U.S. government, losing access to critical technologies such as Qualcomm chipsets and Google services. Additionally, Huawei’s CFO was placed under house arrest in Canada, raising allegations of trade secret theft. Despite these challenges, Huawei maintained its leadership in the Chinese market and demonstrated resilience, even as it withdrew from Western markets.
Today, Huawei remains a formidable competitor in the smartphone sector, dominating its domestic market and retaining a small but loyal international customer base as an alternative to the Google ecosystem.
2. How to invest in Huawei?
Huawei is not a publicly traded company, meaning its shares cannot be purchased on stock exchanges. However, there are indirect ways to invest in Huawei.
One of the most popular methods is to purchase bonds issued by Huawei through Proven Honour Capital Ltd. These bonds offer attractive returns, appealing to investors seeking indirect exposure to Huawei.
Huawei bonds can be purchased directly through online brokerage firms. Detailed information about bond terms and benefits can be found on Huawei’s Bond Investor Relations page.
For Huawei employees in China, the company offers an internal stock ownership program. However, this program is limited to eligible employees and is not available to external investors.
Although direct investment in Huawei shares is not an option, the company remains a noteworthy name in the global financial market due to its remarkable technological advancements and strong position in the Asian market.
3. Will Huawei go public through an IPO?
Huawei, one of the largest technology corporations in the world, has repeatedly stated that it has no intention of listing its shares on the stock market. However, this has not stopped speculation about a potential IPO in the future.
Attention on Huawei surged in the late 2010s when it rose to become the second-largest mobile phone manufacturer globally, despite being a newcomer to the international market. Huawei’s rapid growth has led investors to wonder whether the company might change its direction and go public.
Currently, Huawei operates under an employee-owned model, where eligible Chinese employees have the right to purchase shares in the company. This model was designed from the outset to keep Huawei as a privately held entity controlled internally. Consequently, the chances of the public owning Huawei shares remain distant.
For external investors, Huawei bonds are currently the only way to gain exposure to this technology giant. Thus, the prospect of Huawei announcing an IPO date remains uncertain, and it is possible that an IPO may never happen.
4. Who owns Huawei?
Huawei Technologies Company Ltd. is currently a private enterprise with a unique ownership structure. All of the company’s shares are owned by eligible employees under its internal ownership policy.
This means that external investors, including individuals and institutions, cannot directly purchase Huawei shares. Instead, they can only access the company through alternative investment instruments such as bonds. This structure allows Huawei to maintain its independence and minimize external influence.
5. When is Huawei’s IPO date?
As of now, Huawei has no plans to go public. The company’s founder and CEO have repeatedly emphasized their commitment to maintaining the employee-ownership model.
Rather than listing shares, Huawei has built a robust bond infrastructure, creating opportunities for external investors to participate in the company’s growth potential. However, this does not change the fact that Huawei’s IPO date remains an unanswered question—and it may never become a reality.
Although Huawei has no plans for an IPO, there are still indirect ways to invest in the company through bonds. This allows external investors to tap into Huawei’s growth potential. Be sure to carefully evaluate your options to align with your personal financial strategy.
