Qifa Postpones Moscow IPO Amid Rising Interest Rates: A Delayed $18.9 Million Venture in Sino-Russian Trade

Qifa, a Chinese digital platform, postpones its Moscow IPO due to high interest rates. The platform, which is centered on Russia-China trade, had previously intended 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 (approximately US$18.9 million) back in August. The intention was to sell about 20% of Qifa's stocks.

"Currently, it's either October or November. This follows the crucial increase in the interest rate and the overall atmosphere in the stock market has turned challenging," Sun informed Reuters while attending Russia's Eastern Economic Forum in Vladivostok. "Consequently, we've chosen to delay it for our prospective investors."

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 sale of consumer products like clothing and footwear.

In July, the central bank of Russia increased its principal interest rate by 200 basis points, bringing it to 18 per cent. This is the highest it's been in over two years. The bank has pledged to keep escalating the rate until the inflation rates in the surging economy decrease.