Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: Aims for $18.9 Million Boost for China-Russia Trade
Qifa, the Chinese digital platform, postpones its Initial Public Offering (IPO) in Moscow due to soaring interest rates. The company, which concentrates on commerce between China and Russia, had initially intended to generate US$18.9 million from its Moscow listing.
On Tuesday, Sun announced that the IPO in Moscow, valued at 1.7 billion roubles (US$18.9 million), was originally scheduled for August, with the intention of selling approximately 20% of Qifa's shares.
"Currently, it's either October or November. This is following the significant increase in the prime interest rate and when the overall situation at the stock market got tougher," Sun disclosed to Reuters, during a break at Russia's Eastern Economic Forum in Vladivostok. "Therefore, we made a decision to delay it for the benefit of our prospective investors."
Qifa reported a 75% increase in its annual revenue in 2023, reaching 5.7 billion roubles. The majority of this income was from the sale of consumer products like clothing and footwear.
In July, the Central Bank of Russia raised its primary interest rate by 2% to 18%, the most significant increase seen in over two years. The bank has committed to persist with this approach until the inflation rates in the excessively robust economy decrease.
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