(Yicai Global) Sept. 30 -- The share price of China's Transsion Holdings has defiantly risen in its first morning of trading while ignoring a fresh lawsuit that Huawei Technologies has filed against the popular phone seller in Africa.
Transsion's shares [SHA:688036] jumped nearly 70 percent to CNY59.63 (USD8.40) before lunch after surging almost 100 percent upon the opening. The Shenzhen-based firm raised about CNY3 billion (USD421 million) by issuing more than 80 million shares, or around 10 percent of its total stock, on Shanghai's new Star Market.
Founded in 2013, the relatively unknown handset maker has surpassed Huawei in shipments to Africa, making it the continent's best-selling brand with a 48.7 percent market share, according to industry analyst IDC.
Transsion trusts that the law will be fair, Chairman Jun Zhaojiang told Yicai Global. The firm has not received Huawei's summons yet and the case will not affect the firm's listing, Chinese newspaper Southern Metropolis Daily reported, citing the defendant.
On Sept. 23, Huawei filed its lawsuit against Transsion and its affiliates due to alleged copyright infringement regarding pictures that show up when turning one of Transsion's phone models on, according to a statement that the Shenzhen Intermediate People's Court published to show that it accepts the case. The plaintiff has not otherwise commented on the matter.
Will Lu, deputy general manager of Transsion's research and development department, used to work for Huawei as a senior software engineer, according to his LinkedIn.
These types of cases usually involve compensations worth at least CNY10 million (USD1.4 million), a person familiar with the case told Yicai Global.
Transsion's prospectus shows that the firm and its subsidiaries have obtained 630 patents in China. Huawei has over 100,000 patents globally, which is much more than any other Chinese phonemaker has.
Editor: Emmi Laine