Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: A Delayed $18.9 Million Venture Amidst Challenging Stock Exchange Environment
The planned Moscow IPO of Chinese digital platform Qifa has been postponed due to high interest rates. Qifa, a platform that concentrates on trade between China and Russia, had intended to garner US$18.9 million from its Moscow listing.
On Tuesday, Sun revealed that the IPO in Moscow, valued at 1.7 billion roubles (equivalent to US$18.9 million), was initially scheduled for August. The objective was to sell approximately 20% of Qifa's shares.
"Currently, we're looking at either October or November. This comes following the significant increase in the prime interest rate and amidst a challenging climate in the stock market," Sun informed Reuters while attending Russia's Eastern Economic Forum in Vladivostok. "Thus, in consideration of our future investors, we've decided to delay it."
Qifa reported a 75 per cent annual increase in its revenue to 5.7 billion roubles in 2023. The majority of this revenue came from the sale of consumer items like apparel and footwear.
In July, the Russian central bank increased its primary interest rate by 2% to 18%, marking the peak level in over two years. It also pledged to persist with these increases until the inflation rates in the excessively buoyant economy decrease.
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