Qifa Postpones Moscow IPO amid High Interest Rates: A Delayed $18.9M Bid in Russia-China Trade Arena

The Beijing-based online marketplace, Qifa, has postponed its initial public offering (IPO) in Moscow due to escalating interest rates. Qifa, a platform that facilitates trade between China and Russia, had aimed to garner a sum of US$18.9 million from this Moscow listing.

On Tuesday, Sun announced that the initial plan was to launch the IPO in Moscow, valued at 1.7 billion roubles (approximately US$18.9 million), in August. The aim was to sell about 20 per cent of Qifa's shares.

"Currently, it's either October or November. This is following the significant increase in the principal interest rate and when the overall situation in the stock market turned challenging," Sun informed Reuters during the Eastern Economic Forum in Vladivostok, Russia. "Hence, we've decided to delay it for the benefit of our prospective investors."

Qifa reported that its revenue skyrocketed by 75 per cent annually, reaching 5.7 billion roubles in 2023. The majority of this revenue came from the sale of consumer products like clothing and footwear.

In July, the Central Bank of Russia increased its principal interest rate by two percentage points, taking it to 18%. This is the steepest it's been in over two years. The bank also pledged to keep heightening the rate until the inflation levels in the excessively heated economy decrease.