Shenzen Transsion Holdings Applies to Raise Money Through IPO

China’s mobile phone manufacturer Shenzen Transsion Holdings, which sells through its brands  Infinix, Techno and Itel, has applied to raise capital on Shanghai’s tech board through an initial public offering.

The firm’s move to sell through the bourse comes after the completion of guidance and advice on the IPO applicant’s finances, management and corporate governance by an investment bank.

It is one of the first companies alongside other 11 mainland China companies that seeks to list on the board, which seeks to provide an avenue for Chinese firms to raise capital..

According to Frank Xu, an analyst at Q fund, Transssion is facing a lot of competition and needs a lot of money; the move to list at the board will provide it finances its expansion and growth.

“The company is facing more competition as it moves up the value chain to produce smartphones, and they need money to improve their infrastructure and services to attract more customers,” he was quoted by South China Morning post.