Huawei founder Ren Zhengfei has dismissed rumors that the company is considering a public float, stating that the company does not wish to be beholden to “greedy” investors.
At a press conference in London attended by the Telegraph, Ren said that if Huawei fell under the control of shareholders focused on short-term gains, it could dampen the vendor's long-term growth prospects.
“Shareholders are greedy. They want to squeeze every bit out of a company as soon as possible,” he said.
Huawei is currently owned by its employees, and this formula has been crucial for its success, Ren said. This structure motivates employees to take a long-term view and focus on future growth.
Some industry watchers have suggested that an IPO could help Huawei build trust in western markets such as the US, as it would allow westerners to take a stake in the company and compel Huawei to comply with financial transparency legislation.
But Ren insisted that the company is transparent enough without needing to conduct an IPO.