China's Kada chooses AIM

Kada Technology, a Chinese provider of components and devices for the information technology and consumer electronics markets, is set to float on AIM in July.

Market capitalisation of the company at the time of admission to AIM is expected to be in the region of £100m. In 2011, Kada reported audited revenue and profit before tax in excess of $82m and $13m respectively.

Broker finnCap is acting as nominated adviser and broker to the company.

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Founded in 2004, Kada Technology employs more than 130 people and has headquarters in Shenzhen as well as offices in Hong Kong, Beijing, Shanghai, Zhuzhou and Mianyang in China; it also has offices outside China in Kuala Lumpur and Malaysia.

The group's Distributorship Division distributes and trades a multitude of electronic components, predominantly Integrated Circuits, most of which are sourced locally. Many of the group's electronic components are used in the manufacture of consumer electronics, Internet terminals and routers as well as communication devices and media players.

The group's Solutions Business involves the design, development and sale of solutions packages for electronic devices, such as netbooks, and hand-held tablet devices).

Kada's Media Platform Business is based on a technology which enables wireless multimedia dissemination and monitoring with applications that can be deployed via a 3G network. For example, Kada has designed a Wireless Taxi Media solution which is a small display terminal, mounted on a taxi's front passenger headrest that disseminates multimedia information and advertising programmes for passengers.

Kada Technology's growth strategy is to roll out its wireless media operations, invest in research and development capacity and projects, and to increase the number of authorised distributorships for electronic components. In addition, it plans to broaden the product lines that the group distributes for existing customers, while expanding the group's geographical market reach in the People's Republic of China and internationally.

"The board is delighted to join AIM which marks a significant step for Kada Technology, enabling us to capitalise on the considerable opportunities that exist in our key markets," said He Xuebom, Chief Executive Officer (CEO) of Kada.

"In particular, the board has identified a significant opportunity for growth in the Media Platform Business and expects this to assist in the group's future growth. The market for Kada Technology's products and services is growing at a considerable rate domestically, and the group has innovative technology coupled with a well established business to capitalise on this growth," the CEO added.

JH