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Transsion, Africa’s smartphone king, joins IPO rush on Shanghai’s Nasdaq-style stock market

  • The Shenzhen-based company aims to raise up to US$437 million on the Science and Technology Innovation Board

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Transsion Holdings, headquartered in Shenzhen, has been focused on bringing affordable smartphones and feature phones to developing economies since it was founded in 2006. Photo: Felix Wong
Li Taoin Shenzhen

Transsion Holdings, the Chinese budget smartphone maker that leads sales in Africa, has received approval to go public on Shanghai’s new Nasdaq-style stock market, as the company’s low-cost handsets entice millions of new consumers in the developing world.

The Shenzhen-based company, which filed its initial public offering (IPO) application in March, aims to raise up to 3.01 billion yuan (US$437 million) on the Science and Technology Innovation Board, also known as the Star board, according to an announcement on the Shanghai Stock Exchange website on Tuesday.

As part of that process, the Star board’s listing committee asked Transsion to submit further information about the competitiveness of its core technologies, both at home and abroad, and its other technical advantages, the announcement said.

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A Transsion spokeswoman said the company had no comment at present.

Transsion Holdings, the largest mobile phone supplier in Africa, operates its own handset factory in Ethiopia. Photo: Handout
Transsion Holdings, the largest mobile phone supplier in Africa, operates its own handset factory in Ethiopia. Photo: Handout
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The company has been focused on bringing affordable smartphones and feature phones, as well as handsets with physical keypads and limited functionality, to developing economies since it was founded in 2006. That strategy enabled it to become the biggest mobile phone supplier in Africa.

With its business entrenched outside China, Transsion had to meet regulators’ scrutiny about its sustainability and profitability. Transsion received about 62 official queries from the Shanghai Stock Exchange in May, which resulted in the company missing the cut for the first batch of firms to debut on the Star board on Tuesday.

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