Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: A Strategic Delay for Chinese Digital Trade Platform
The initial public offering (IPO) in Moscow for Qifa, a Chinese digital platform, has been postponed due to high interest rates. Qifa, a company that concentrates on trade between Russia and China, had hoped to generate US$18.9 million from its Moscow listing.
On Tuesday, Sun announced that the 1.7 billion rouble (approximately US$18.9 million) Initial Public Offering (IPO) in Moscow was originally scheduled for August, aiming to sell approximately 20 per cent of Qifa's stocks.
"We're now in either October or November, following the significant increase in the primary interest rate and during a time of increased challenges in the stock market," Sun conveyed to Reuters during an off-stage conversation at Russia's Eastern Economic Forum in Vladivostok. "Thus, we've chosen to delay it for the benefit of our prospective investors."
Qifa reported a 75% annual increase in their revenue, reaching 5.7 billion roubles in 2023. The majority of this revenue was generated from the sales of consumer products like footwear and apparel.
In July, the central bank of Russia elevated its primary interest rate by 2 percent, reaching 18 percent, the peak in over two years. The bank has pledged to persist in this course of action until inflation rates in the excessively buoyant economy decrease.
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