Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: A Planned $18.9 Million Listing Delayed Due to Economic Uncertainty
The Beijing-based tech firm, Qifa, postpones its initial public offering (IPO) in Moscow due to soaring interest rates. Qifa, a company that concentrates on commerce between China and Russia, initially aimed to generate a capital of US$18.9 million from its Moscow listing.
On Tuesday, Sun announced that the initial plans for the IPO in Moscow, valued at 1.7 billion roubles (or US$18.9 million), were made in August. The intention was to sell approximately 20 per cent of Qifa's stocks.
"Currently, it's either October or November. This is following the significant increase in the primary interest rate, and the conditions in the stock market have become tougher," Sun explained to Reuters during Russia's Eastern Economic Forum in Vladivostok. "Hence, for the sake of our prospective investors, we've decided to push it back."
Qifa reported a 75% annual increase in their revenue, which rose to 5.7 billion roubles in 2023. The majority of this income was generated from the sale of consumer products like clothing and footwear.
In July, the Central Bank of Russia raised its principal interest rate by 2% to 18%, a peak not seen in over two years. The bank also pledged to persist with its tighter monetary policy until inflation decreases in their excessively buoyant economy.
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