Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: A Delayed $18.9M Endeavor in Sino-Russian Trade
Qifa, a Chinese digital platform that concentrates on trade between China and Russia, has postponed its Moscow IPO due to steep interest rates. The company had initially intended to garner $18.9 million from its Moscow listing.
On Tuesday, Sun announced that the initial plans for the IPO in Moscow were set in August, aiming to sell approximately 20% of Qifa's shares, with an estimated value of 1.7 billion roubles (US$18.9 million).
"Currently, it's either October or November. This follows the significant increase in the primary interest rate and during a time when the overall climate in the stock market has become challenging," Sun shared with Reuters while attending the Eastern Economic Forum in Vladivostok, Russia. "Therefore, we've chosen to delay it for the benefit of our future investors."
Qifa reported that its annual income for 2023 soared by 75% to reach 5.7 billion roubles. The major portion of this revenue was derived from the sale of consumer products like footwear and apparel.
In July, the central bank of Russia raised its primary interest rate by two percentage points to 18 per cent, marking the highest increase in over two years. The bank pledged to keep making adjustments until inflation rates decrease in an overstimulated economy.
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