Huawei Would Consider Going Public

Chinese telecommunications equipment maker Huawei Technologies has announced it would consider offering potential investors an initial public offering after posting sales that would likely pass those of rival Ericsson.

For the company to decide to have an IPO, it would greatly depend on interest coming from individuals interested in becoming shareholders. Huawei, said Cathy Meng Wanzhou the company’s Chief Financial Officer, does not need to raise any new capital.

The company expects sales to increase this year by 12% compared to an increase of 8% last year. Huawei was founded in 1987 by Ren Zhengfei and if the company was to have an IPO it may help them expand into some overseas markets through an increase of transparency and security issues over the company being lowered, said on industry expert.

The House Intelligence Committee from the U.S. Congress recommended last October that businesses should refrain from buying any equipment that was made by Huawei. Concerns were cited by the committee that China could possibly install software or even hardware of a malicious type into networks in the United States. Those warnings came since Zhengfei the founder was once a member of the Chinese military.

Because perception is very important, a number of analysts said listing the company via an IPO would help its image worldwide, but doubted the company is set to do something like that.

The same committee in the House also said U.S. companies should not purchase products made by ZTE Corp another company in China that also makes equipment for telecommunications.

Sales, in 2012 for Huawei, jumped by 33% to $35.4 billion, said the Weng.