Qifa Postpones Moscow IPO Amid High Interest Rate Concerns: Chinese Digital Platform Awaits More Favorable Market Conditions

The initial public offering (IPO) in Moscow of Qifa, a Chinese digital platform, has been postponed due to elevated interest rates. Qifa, a company that concentrates on trade between China and Russia, had intended to generate US$18.9 million from its Moscow listing.

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

"Currently, we are in October or November. This is post the significant rise in the prime interest rate and when the overall conditions in the stock market started getting challenging," Sun conveyed to Reuters, while attending Russia's Eastern Economic Forum in Vladivostok. "Therefore, for the benefit of our prospective investors, we've decided to delay it."

Qifa reported a 75% annual increase in its revenue for 2023, reaching 5.7 billion rubles. The majority 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 18%, marking the steepest rate in over two years. The bank has pledged to persist in increasing the rate until inflation is reduced in the overly stimulated economy.