China's Kada seeks brand recognition via AIM listing

China-based Kada Technology Holdings Ltd, which applied on Monday to trade on London's junior market, said it hoped an overseas listing will bring it prestige and more profitable ties with lenders and suppliers.

The tech component distributor expects to be valued at about 100 million pounds ($156.85 million) once it starts trading.

It chose London's AIM market as that was faster than trying to go public in China or in the United States, where volatility and slower listings are major concerns, the company said.

"When we speak to our bank about funding, more financing, they do recognize that a Chinese company listed overseas is not an easy task," Kada Chief Financial Officer Lee Kheng Yam said.

"It brings with it a certain prestige and corporate brand recognition that would open doors for us in order to get better terms with the banks in China, as well as our suppliers and business associates."

The company is likely to start trading on AIM later this month.

Agencies - China Daily