Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: A Shift in Sino-Russian Trade Dynamics
The Moscow IPO of Qifa, a Chinese digital platform, has been postponed due to rising interest rates. The platform, which primarily deals with trade between Russia and China, had an initial plan to generate US$18.9 million from its Moscow listing.
On Tuesday, Sun announced that the initial plan was to launch the IPO in Moscow, valued at 1.7 billion roubles (US$18.9 million), in August. 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 primary interest rate, and the overall climate in the stock market has gotten tougher," Sun informed Reuters during a side conversation at Russia's Eastern Economic Forum in Vladivostok. "Therefore, thinking about our prospective investors, we chose to delay it."
Qifa reported that its income surged by 75 per cent annually to reach 5.7 billion roubles in 2023. The majority of this revenue came from the sales of consumer items like clothing and footwear.
In July, the Central Bank of Russia raised its principal interest rate by 2% to 18%, marking the highest increase in over two years. The bank has also pledged to persist with its stringent measures until the inflation rates decrease in its excessively buoyant economy.
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