Kada Technology unveils listing on Aim as China looks to London

KADA Technology is this morning due to announce its intention to float on London’s Alternative Investment Market (Aim), making it the second Chinese company in a week to unveil a UK listing.

The eight-year-old business, which provides components and devices for consumer electronics and the IT industry, is heading for a market capitalisation of £100m.

The Shenzhen-based firm’s float comes just days after Fairy Fox, the Chinese clothing retailer, unveiled its intention to join Aim.

Shares in Kada, which generated revenues of ($82m) £52.2m last year, could list as soon as this week.

Kada chief financial officer Lee Kheng Yam told City A.M.: “We want to raise sufficient funds to focus on new projects in wireless media.

“Despite all the Eurozone problems London is facing at the moment, I still think it’s one of the highest exchanges in the world.”

The string of Chinese listings in London comes in the wake of Geeya Technology’s £23m acquisition of Aim-listed Harvard International, which marks the first time a non-state owned Chinese business has bought a UK-listed company.

Richard Abrahams, co-chief executive of London and Beijing-based broker NSBO, said: “Hong Kong is a very crowded market, there is a queue for companies to get listed and Aim has done a good job of promoting itself in China.

“The Chinese like the UK more than the US – they feel more politically accepted here. Keep an eye on the acquisition trail, there will be more of these in the near future.”