Qifa Postpones Moscow IPO Amid High Interest Rates: A Strategic Delay for the Chinese Digital Trade Platform

The Chinese online platform Qifa postpones its Moscow IPO due to soaring interest rates. Specializing in facilitating trade between Russia and China, Qifa had initially aimed to generate $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). The aim was to sell approximately 20% of Qifa's shares.

"Currently, it's either October or November, following the significant increase in the prime interest rate and amid a challenging climate in the stock market," Sun conveyed to Reuters while attending Russia's Eastern Economic Forum in Vladivostok. "Therefore, we've decided to delay it for the sake of our prospective investors."

Qifa reported a 75 per cent increase in its annual revenue, hitting 5.7 billion roubles in 2023. The majority of this income was generated from the sales of consumer products like footwear and apparel.

In July, the Central Bank of Russia increased its primary interest rate by 2% to 18%, the most significant rise in over two years. The bank has pledged to persist with these increases until inflation levels decrease in the excessively buoyant economy.