Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: A Delayed $18.9 Million Entry into Russian Market
Qifa, a Chinese digital platform, has postponed its initial public offering (IPO) in Moscow due to high interest rates. The company, which centers on commerce between Russia and China, had initially aimed to accumulate $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 (about US$18.9 million) in August, with an aim to sell approximately 20% of Qifa's shares.
"Currently, we're looking at a timeline around October or November. This comes in the wake of the significant increase in the principal interest rate and the consequent challenging circumstances in the stock market," Sun expressed to Reuters while at Russia's Eastern Economic Forum in Vladivostok. "Therefore, considering our prospective investors, we've decided to delay it."
Qifa reported a 75% annual increase in its revenue for 2023, amounting to 5.7 billion roubles. The majority of this income was generated from the sale of consumer items like footwear and apparel.
In July, the central bank of Russia increased its fundamental interest rate by 2% to reach 18%, the steepest in over two years. The bank also pledged to maintain this financial tightening until inflation levels drop in the excessively heated economy.
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