Business
Qifa Delays Moscow IPO Amid Rising Interest Rates: A Stall in China-Russia Trade Expansion Plans
Qifa, a Chinese digital platform specializing in Russia-China trade, postpones its Moscow IPO due to soaring interest rates. The company had initially 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 (equivalent to US$18.9 million) in August. The objective was to sell approximately 20% of Qifa's shares.
"Currently, it's either October or November. This period follows the significant increase in the key interest rate and coincides with a challenging phase in the stock market," Sun revealed to Reuters during a side conversation at the Eastern Economic Forum in Vladivostok, Russia. "Hence, with our forthcoming investors in mind, we've chosen to delay it."
Qifa reported that its earnings soared by 75 per cent annually, reaching 5.7 billion roubles in 2023. The majority of this income came from consumer product sales, like clothing and footwear.
The Central Bank of Russia increased its primary interest rate by 2% to reach 18% in July, a figure not seen in over two years, and has committed to maintaining this upward trend until the inflated economy stabilizes.
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