Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: A Delayed $18.9 Million Listing Amid Tough Market Conditions
Qifa, a Chinese digital platform centered on trade between China and Russia, has postponed its Moscow IPO due to high interest rates. The company had intended to generate $18.9 million from its Moscow listing.
On Tuesday, Sun announced that the initial plan was to launch the 1.7 billion-rouble (equivalent to US$18.9 million) IPO in Moscow back in August. The aim was to sell approximately 20% of Qifa's shares.
"Currently, it's either October or November. This follows the significant increase in the prime interest rate and during a time when conditions in the stock market have become increasingly challenging," Sun stated to Reuters at the Eastern Economic Forum in Vladivostok, Russia. "Therefore, with our prospective investors in mind, we've chosen to delay it."
Qifa reported a 75% increase in its annual revenue, reaching 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 reach 18%, a peak not seen in over two years. The bank has also promised to maintain this upward trend until the inflation rates in their over-stimulated economy begin to decline.
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