Business
Qifa Postpones Moscow IPO Amid High Interest Rates: A Delayed $18.9 Million Move to Support Future Investors
Qifa, a Chinese digital platform concentrating on trade between China and Russia, has postponed its Moscow IPO due to rising interest rates. The company had initially aimed to generate $18.9 million from its listing in Moscow.
On Tuesday, Sun announced that the initial plans for an IPO in Moscow, worth 1.7 billion roubles (approximately US$18.9 million), were set in August. The intention was to sell about 20 percent of Qifa's shares.
"Currently, it's either October or November. This is subsequent to the significant increase in the prime interest rate and during a time when the overall climate in the stock market has grown challenging," Sun mentioned to Reuters while attending Russia's Eastern Economic Forum in Vladivostok. "Therefore, for the sake of our potential investors, we've chosen to delay it."
Qifa reported a 75% annual increase in its revenue, reaching 5.7 billion roubles in 2023. The majority of this income came from the sales of consumer goods like clothing and footwear.
In July, the Central Bank of Russia raised its principal interest rate by 2% to reach 18%, marking the highest increase in over two years. The bank has pledged to maintain this upward trend until the inflation rates in the excessively heated economy begin to reduce.
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