High Interest Rates in Russia Force Chinese Digital Platform Qifa to Postpone Its $18.9M Moscow IPO

The Chinese online platform, Qifa, postpones its Moscow Initial Public Offering (IPO) due to the impact of high interest rates. Qifa, a firm that specializes in Sino-Russian trade, had intended to generate around US$18.9 million from its Moscow listing.

On Tuesday, Sun announced that the initial plan was to launch the IPO in Moscow, which is worth 1.7 billion roubles (equivalent to US$18.9 million), in August. The aim was to sell approximately 20% of Qifa's shares.

"Currently, we're looking at a timeline of October or November. This comes post the significant increase in the interest rate and during a challenging period in the stock market," Sun mentioned to Reuters while attending Russia's Eastern Economic Forum in Vladivostok. "Therefore, considering our potential investors, we've decided to delay it."

Qifa reported a 75% annual increase in its revenue in 2023, amounting to 5.7 billion roubles. The majority of this revenue came from the sale of consumer products like clothing and footwear.

In July, the Central Bank of Russia increased its primary interest rate by 2% to reach 18%, the most substantial rate in over two years. The bank has committed to maintaining this uptick until the inflation rates in the hyperactive economy decrease.