Qifa Postpones Moscow IPO Amid Rising Interest Rates: Aims to Protect Future Investors Amid Tough Economic Climate

Qifa, a Chinese digital platform concentrating on Russian-Chinese commerce, has postponed its Moscow IPO due to elevated interest rates. The company had intended to generate $18.9 million from its Moscow listing.

On Tuesday, Sun announced that the initial plan for the 1.7 billion rouble (approximately $18.9 million) IPO in Moscow was slated for August, with the aim of selling roughly 20% of Qifa's shares.

"Currently, we're looking at either October or November. This is following the significant increase in the main interest rate and considering the challenging conditions prevailing in the stock market," Sun explained to Reuters while attending Russia's Eastern Economic Forum in Vladivostok. "Hence, we've decided to delay it for the sake of our prospective investors."

Qifa reported a 75% annual increase in its income, reaching 5.7 billion roubles in 2023. The majority of the revenue came from the sale of consumer items like clothing and footwear.

In July, the central bank of Russia increased its primary interest rate by 2% to 18%, the steepest in over two years. The bank also pledged to persist with this contractionary policy until inflation levels in the excessively buoyant economy are reduced.