This archive report was first published on 23 September 2019.
Transsion, the leading smartphone manufacturer in Africa, has made headlines with its Initial Public Offering (IPO) priced at 35.15 yuan a share, implying a trailing earnings multiple of 42.8 times, according to a filing published on Wednesday, September 18, 2019.
This valuation is double that of Apple's 18.98 times and fellow rival Samsung Electronics Co.'s 9.92 times, according to data compiled by Bloomberg.
As the largest seller of smartphones in Africa, Transsion boasts several sub-brands, including TECNO, Infinix, and itel, which each do well in different markets. The company also sells phones in the Middle East, South East Asia region, and Latin America.
According to an IDC Report from 2018, Transsion commanded 34.3% of smartphones sold in Africa and 58.7% of feature phones in the market.
With this IPO, Transsion could become a big name talked about and bashed in equal measure, especially given its Chinese origin and the West's issues with Chinese tech companies, such as Huawei.
Image Source: here
