Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: An In-depth Look at the Trade Platform’s Strategic Delay
Qifa, a Chinese digital platform, postpones its initial public offering (IPO) in Moscow due to high interest rates. The platform, specializing in trade between China and Russia, had intended to generate $18.9 million from its Moscow listing.
On Tuesday, Sun announced that the initial plan was to launch the IPO in Moscow, valued at 1.7 billion roubles (equivalent to US$18.9 million), back in August. The intention was to put approximately 20 per cent of Qifa's shares on the market.
"Currently, we're looking at either October or November. This is following the significant increase in the prime interest rate and amidst a challenging climate in the stock market", Sun said to Reuters during Russia's Eastern Economic Forum in Vladivostok. "Therefore, thinking about our potential investors, we've chosen to delay it."
Qifa reported a 75% annual increase in its revenue, reaching 5.7 billion roubles in 2023. The majority of this revenue was generated from the sales of consumer items like clothing and footwear.
In July, the Central Bank of Russia raised its primary interest rate by 2% to 18%, marking the highest rate in over two years. The bank has pledged to keep increasing the rate until the inflation levels in the highly active economy decline.
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