Business
Qifa Postpones Moscow IPO Amid High Interest Rates: A Strategic Delay for the Chinese Digital Trade Platform
The high-interest rates have prompted Qifa, a Chinese digital platform specializing in commerce between Russia and China, to postpone its initial public offering (IPO) in Moscow. The company had initially intended to generate about US$18.9 million from this listing in Moscow.
On Tuesday, Sun announced that the initial plan was to launch a 1.7 billion-rouble (equivalent to US$18.9 million) IPO in Moscow back in August, with the intention of disposing of approximately 20 per cent of Qifa's stocks.
"Currently, we're looking at either October or November. This is following the significant increase in the key interest rate and amidst challenging conditions in the stock market," Sun informed Reuters while at Russia's Eastern Economic Forum in Vladivostok. "Hence, we've decided to delay it for the benefit of our prospective investors."
Qifa reported a 75% annual increase in its revenue in 2023, reaching 5.7 billion roubles. The majority of this income was derived from the sale of consumer items like clothing and footwear.
In July, the Central Bank of Russia raised its principal interest rate by 2% to 18%, marking its highest point in over two years. The bank also pledged to keep intensifying these measures until inflation rates decrease in the economy, which is currently running too hot.
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