Business
Qifa Postpones Moscow IPO Amid High Interest Rates: A Strategic Delay or a Missed Opportunity?
Qifa, a Chinese digital platform specializing in Russia-China trade, postpones its Moscow IPO due to soaring interest rates. The company had initially aimed to generate US$18.9 million from its Moscow listing.
On Tuesday, Sun announced that the initial public offering (IPO) in Moscow, which is valued at 1.7 billion roubles or US$18.9 million, was originally scheduled for August. The intention was to sell approximately 20% of Qifa's shares.
"Currently, we're in either October or November. This follows the crucial increase in the interest rate and the overall atmosphere in the stock market has turned more challenging," Sun conveyed to Reuters during Russia's Eastern Economic Forum in Vladivostok. "Therefore, thinking about our future investors, we chose to delay it."
Qifa reported a 75% annual increase in its revenue, reaching 5.7 billion roubles in 2023. The majority of this income came from the sale of consumer items like clothing and footwear.
In July, the Central Bank of Russia boosted its primary interest rate by 2% to reach 18%, a peak not seen in over two years. The bank has pledged to persist with this tightening strategy until inflation rates in the excessively robust economy decrease.
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