Business
Qifa Defers Moscow IPO Amid Rising Interest Rates: A Strategic Delay to Protect Future Investors
Qifa, a Chinese digital platform, postpones its Moscow IPO due to high interest rates. The company, which primarily deals with trade between China and Russia, had originally aimed to generate US$18.9 million from its Moscow listing.
On Tuesday, Sun announced that the initial plan was to launch an IPO in Moscow, worth 1.7 billion roubles (US$18.9 million) in August. The aim was to offload approximately 20% of Qifa's shares.
"Currently, we're looking at either October or November. This comes in the wake of the significant increase in the base interest rate and amid a challenging climate on the stock market," Sun informed Reuters during an off-stage conversation at the Eastern Economic Forum in Vladivostok, Russia. "Therefore, in consideration of our prospective investors, we've opted to delay it."
Qifa reported a 75% increase in its annual revenue for 2023, reaching 5.7 billion roubles. The majority of this income was generated from the sales of consumer products like clothing and footwear.
In July, the central bank of Russia escalated its prime interest rate by 2% to reach 18%, marking the peak in over two years. The bank has also committed to maintain this increase until the inflation rates in the excessively stimulated economy are reduced.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.