Business
Qifa Postpones Moscow IPO Amid High Interest Rates: A Strategic Delay in Chinese-Russian Trade Expansion
Qifa, a Chinese digital platform that centers on commerce between Russia and China, has postponed its Initial Public Offering (IPO) in Moscow due to high interest rates. The company initially aimed to generate $18.9 million from its Moscow listing.
On Tuesday, Sun announced that the initial plan was to launch an IPO in Moscow worth 1.7 billion roubles (equivalent to US$18.9 million) in August. The aim was to sell approximately 20% of Qifa's shares.
"Currently, it's either October or November. This is following the significant increase in the primary interest rate and amidst a challenging climate in the stock market," Sun stated to Reuters during an offside conversation at Russia's Eastern Economic Forum in Vladivostok. "Therefore, with our prospective investors in mind, we've chosen to delay it."
Qifa reported a 75% annual increase in its revenue in 2023, amounting to 5.7 billion roubles. 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 rate in over two years. They pledged to keep on escalating the rate until the inflation rates in the excessively heated economy decrease.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.