Business
Qifa Postpones Moscow IPO Amid High Interest Rates: A Strategic Delay Amidst Russia’s Economic Climate
Qifa, a Chinese digital platform specialising in Russia-China trade, has postponed its initial public offering (IPO) in Moscow due to high interest rates. The company had intended to generate $18.9 million from this Moscow listing.
On Tuesday, Sun announced that the initial plan was to launch an IPO in Moscow worth 1.7 billion roubles (about 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 is following the significant increase in the principal interest rate and amidst the challenging conditions in the stock market," Sun informed Reuters during an off-topic conversation at Russia's Eastern Economic Forum in Vladivostok. "Therefore, with our prospective investors in mind, we chose to delay it."
Qifa reported a 75% increase in its annual revenue, reaching 5.7 billion roubles in 2023. The majority of this revenue was generated from the sale of consumer items like footwear and apparel.
In July, the Central Bank of Russia increased its primary interest rate by 2% to 18%, a peak not seen in over two years. The bank promises to keep escalating rates until inflation in the excessively heated economy is reduced.
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