Qifa Postpones Moscow IPO Amid Rising Interest Rates: A Delayed $18.9M Bid Amidst Tough Economic Climate

The initial public offering (IPO) in Moscow of Qifa, a Chinese digital platform, has been postponed due to soaring interest rates. Qifa, a firm that concentrates on trade between China and Russia, initially aimed to generate US$18.9 million through its Moscow listing.

On Tuesday, Sun announced that the 1.7 billion rouble (equivalent to US$18.9 million) initial public offering (IPO) in Moscow was originally scheduled in August, with the intention to sell approximately 20% of Qifa's shares.

Sun disclosed to Reuters, during Russia's Eastern Economic Forum in Vladivostok, that the current time is either October or November. This period follows the significant increase in the prime interest rate and the stock market has become more challenging. Therefore, for the sake of our future investors, we've made the decision to delay it.

Qifa reported a 75% annual increase in its revenue, reaching 5.7 billion roubles in 2023. The majority of their earnings came from the sale of consumer products, including clothing and footwear.

In July, Russia's primary financial institution raised its main interest rate by 2% to reach 18%, marking the highest it's been in over two years. The bank has promised to persist with this restrictive strategy until inflation levels decrease in the excessively robust economy.