Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: A Shift in Sino-Russian Trade Landscape
The Moscow IPO of Qifa, a Chinese digital platform, has been postponed due to high interest rates. Qifa, a company that concentrates on Russia-China trade, had intended to generate US$18.9 million from its Moscow listing.
On Tuesday, Sun announced that the IPO in Moscow, which is worth 1.7 billion roubles (approximately US$18.9 million), was initially scheduled in August. The objective was to sell about 20% of Qifa's shares.
"Currently, it's either October or November. This period follows the significant increase in the key interest rate and coincides with a challenging period in the stock market," Sun explained to Reuters at the Eastern Economic Forum in Vladivostok, Russia. "Hence, we thought it best to delay it for the sake of our prospective investors."
Qifa reported a 75 per cent increase in its annual revenue in 2023, reaching 5.7 billion roubles. The majority of this revenue came from the sale of consumer items like clothing and footwear.
In July, the Central Bank of Russia increased its principal interest rate by 2% to reach 18%, marking the highest it's been in over two years. The bank has pledged to persist in this course of action until the inflated economy's inflation rates decrease.
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