SINGAPORE, Oct 5 (Reuters) - China’s Huawei Technologies Co Ltd has reached out to investment banks for advice on an initial public offering, the Wall Street Journal reported.
Citing people familiar with the matter, the WSJ said the telecommunications equipment maker sees an IPO as a way of making itself more transparent and improving its odds of winning big contracts in markets like the United States.
The company hasn’t made a decision to proceed with an IPO or chosen a bank to handle such a transaction, the WSJ said, citing the sources.
Huawei is leaning towards a listing in the United States, but is also considering Hong Kong or London, the newspaper reported.
Security concerns have stymied Huawei’s access to big contracts in the United States, Australia and elsewhere. The Australian government last year cited cyber-security concerns when it barred Huawei from bidding for contracts to build the country’s national broadband network.
The WSJ, citing a person familiar with the matter, said Huawei began to reach out to banks for IPO advice after being forced to drop a small acquisition early last year due to opposition from the Obama administration.
A company spokesman was not immediately available for comment. (Reporting by Michael Urquhart; Editing by Richard Pullin)