Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: Aiming for US$18.9m Raise in Delayed Floatation
Qifa, a Chinese digital platform, postpones its Moscow IPO due to soaring interest rates. The primary aim of Qifa, a company that concentrates on China-Russia trade, was to generate US$18.9 million through its Moscow listing.
On Tuesday, Sun announced that the IPO in Moscow, initially scheduled for August, was worth 1.7 billion roubles (US$18.9 million). The aim was to sell approximately 20% of Qifa's shares.
"Currently, it's either October or November. This is subsequent to the crucial increase in the interest rate and the overall situation in the stock market has become challenging," Sun informed Reuters at the fringe of the Eastern Economic Forum in Vladivostok, Russia. "Hence, we've chosen to delay it for the benefit of our prospective investors."
Qifa reported a 75% annual increase in its revenue in 2023, reaching 5.7 billion roubles. The majority of this revenue came from the sale of consumer products, including clothing and footwear.
In July, the Central Bank of Russia raised its primary interest rate by 2% to reach 18%, a peak not seen in over two years. The bank has pledged to keep on this path of intensifying measures until inflation rates decrease in the excessively buoyant economy.
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