Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: A Strategic Move Amidst Russia-China Trade Dynamics
The initial public offering (IPO) in Moscow by the Chinese digital platform Qifa is postponed due to high interest rates. Qifa, a platform that concentrates on commerce between China and Russia, initially aimed at generating US$18.9 million from its Moscow listing.
On Tuesday, Sun announced that the initial plan was to launch an IPO in Moscow worth 1.7 billion roubles (approximately US$18.9 million) in August, with the intention of selling about 20% of Qifa's shares.
"Currently, it's either October or November. This is following the significant increase in the fundamental interest rate and due to the challenging conditions in the stock market," Sun said to Reuters during a break at Russia's Eastern Economic Forum in Vladivostok. "Hence, we chose to delay it for the benefit of our prospective investors."
Qifa reported that its income surged by 75 per cent annually, reaching 5.7 billion roubles in 2023. The majority of this revenue was earned from the sale of consumer items like apparel and footwear.
In July, the central bank of Russia raised its primary interest rate by 2% to a total of 18%, marking the highest increase in over two years. The bank also pledged to persist with these stringent measures until the inflation rates in the country's excessively robust economy start to decrease.
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