Business
High Interest Rates Force Chinese Digital Platform Qifa to Postpone Moscow IPO Amidst Trade Focus Between Russia and China
The Beijing-based online platform Qifa postpones its Moscow IPO due to soaring interest rates. Initially, Qifa, concentrating on Russia-China trade, intended to generate $18.9 million from its Moscow stock market debut.
On Tuesday, Sun announced that the initial plan was to launch an IPO in Moscow, worth 1.7 billion roubles (equivalent to US$18.9 million), back in August. The objective was to sell approximately 20% of Qifa's shares.
"Currently, we're looking at a timeline around October or November. This comes following the significant increase in the key interest rate and amidst a challenging climate in the stock market," Sun explained to Reuters during the Eastern Economic Forum in Vladivostok, Russia. "Therefore, with our future investors in mind, we've chosen to delay it."
Qifa reported a 75 per cent increase in its annual revenue, reaching 5.7 billion roubles in 2023. The major portion of this revenue came from the sale of consumer items like clothing and footwear.
In July, the central bank of Russia raised its primary interest rate by 2% to reach 18%, a peak not seen in over two years. The bank has pledged to persist in this upward trend until the inflation rates in the overheated economy start to decrease.
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