Shenzhen Transsion applies to raise capital on Shanghai’s technology board after taking Africa’s phone market by storm

Transsion, selling through its brands Tecno, Infinix and Itel, had 58.7 per cent of Africa’s mobile phone market in 2018, according to IDC data

Another 11 mainland China companies have applied to list on the new board

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Transsion makes three of every 10 smartphones sold in Africa. Photo: Felix Wong

Published: 3:00pm, 18 Mar 2019Updated: 10:45pm, 18 Mar 2019

Shenzhen Transsion Holdings, which makes three of every 10 smartphones sold in Africa, has thrown its hat into the ring to raise capital on Shanghai’s tech board via an initial public offering (IPO), becoming one of the first among China’s home-grown technology champions to kick off President Xi Jinping’s fundraising project.

The company completed a three-month counselling period from December 2018 until March, during which an investment bank provided guidance and advice on the IPO applicant’s finances, management and corporate governance, according to Citic Securities, the sponsor of Transsion’s fundraising. The announcement did not disclose the amount of capital Transsion would raise.

The plan marks the first in an IPO beeline for Shanghai’s tech board, ordered to be established last November by Xi to provide an alternative venue to New York and Hong Kong for Chinese start-ups to raise capital.

Another 11 mainland China companies said they have applied to list on the new board. The Shanghai Stock Exchange on Monday unveiled an online platform tracking the review process for the new board. By the evening, no application has been formally accepted by the bourse.

The China Securities Regulatory Commission (CSRC) two weeks ago scrapped a valuation limit on new listings, removing the final barrier that had deterred tech companies from raising capital locally.

Transsion’s plan also sheds light on a little-known company – founded in 2006 by Zhu Zhaojiang – which has made it a strategy to sell entry-level phones in developing economies to undercut pricier smartphones by Apple, Samsung or such Chinese manufacturers as Huawei Technologies and Xiaomi. Transsion’s Spark 2 model has a full display, a face-ID unlocking system, and sells for as little as 40,500 naira (US$112) on Africa’s online commerce platform Jumia.

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Shenzhen Transsion applies to raise capital on Shanghai’s technology board after taking Africa’s phone market by storm

Transsion, selling through its brands Tecno, Infinix and Itel, had 58.7 per cent of Africa’s mobile phone market in 2018, according to IDC data Another 11 mainland China companies have applied to list on the new board

Transsion, selling through its brands Tecno, Infinix and Itel, had 58.7 per cent of Africa’s mobile phone market in 2018, according to IDC data

Another 11 mainland China companies have applied to list on the new board