Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: A Delayed Plan for Chinese-Russian Trade Expansion
Qifa, a Chinese digital platform, postpones its initial public offering in Moscow due to high interest rates. The platform, which centers on trade between China and Russia, had initially aimed to generate $18.9 million from its Moscow listing.
On Tuesday, Sun announced that the IPO in Moscow, initially slated for August, was valued at 1.7 billion roubles (equivalent to US$18.9 million). The aim was to sell approximately 20% of Qifa's shares.
"Currently, it's either October or November. This is following the significant increase in the main interest rate and when the overall conditions in the stock market became challenging," Sun informed Reuters while attending Russia's Eastern Economic Forum in Vladivostok. "Thus, thinking about our prospective investors, we chose to delay it."
Qifa reported a 75% annual increase in its revenue, reaching 5.7 billion roubles in 2023. The majority of this income came from the sale of consumer products, including apparel and footwear.
The Central Bank of Russia raised its principal interest rate by 2% to 18% in July, marking the highest increase in over two years. The bank pledged to maintain this upward trend until the inflation rates of the excessively heated economy decrease.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.