Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: A Strategic Delay in Russian-Chinese Trade Platform’s $18.9 Million Plan
The Moscow IPO of Chinese digital platform, Qifa, has been postponed due to high interest rates. Qifa, a company that primarily deals in trade between China and Russia, had initially aimed to generate US$18.9 million from its Moscow listing.
On Tuesday, Sun announced that the IPO in Moscow, which is valued at 1.7 billion roubles (equivalent to US$18.9 million), was initially scheduled for August. The intention was to sell approximately 20% of Qifa's shares.
"Currently, it's either October or November. This comes following the major increase in the interest rate and during a time when conditions in the stock market have grown challenging," said Sun in an interview with Reuters, conducted at the Eastern Economic Forum in Vladivostok, Russia. "Therefore, in consideration of our future investors, we've elected to delay it."
Qifa reported a 75% annual increase in its revenue, amounting to 5.7 billion roubles in 2023. The majority of the revenue came from the sale of consumer items like clothing and footwear.
The central bank of Russia increased its primary interest rate by two per cent, reaching 18 per cent in July, marking the highest rate in over two years. The bank also pledged to persist with its stringent measures until the inflation rates in the excessively robust economy lessen.
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