Business
High Interest Rates Prompt Chinese Digital Platform Qifa to Delay Moscow IPO
Chinese digital platform, Qifa, postpones its initial public offering (IPO) in Moscow due to high interest rates. Qifa, a company that concentrates on trade between Russia and China, had previously set a goal to generate US$18.9 million from its Moscow listing.
On Tuesday, Sun announced that the 1.7 billion rouble (US$18.9 million) initial public offering (IPO) in Moscow was originally scheduled for August, with the intention of off-loading approximately 20% of Qifa's shares.
"Currently, it's either October or November. This is following the significant increase in the primary interest rate and during a time when the conditions in the stock market have grown more challenging," Sun informed Reuters while at Russia's Eastern Economic Forum in Vladivostok. "Hence, considering our future investors, we chose to delay it."
Qifa reported that its income saw a 75% increase from the previous year, reaching 5.7 billion roubles in 2023. The majority of this revenue came from the sale of consumer items like clothing and footwear.
In July, the central bank of Russia increased its primary interest rate by 2% to reach 18%, marking the highest rate in over two years. The bank has pledged to maintain this upward trend until the inflation rates in the excessively robust economy start to decrease.
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