Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: Chinese Digital Platform Adjusts Plans Amid Tough Stock Exchange Environment
The initial public offering (IPO) in Moscow by the Chinese digital platform, Qifa, has been postponed due to the impact of high interest rates. Qifa, a company centered on commerce between China and Russia, had initially aimed to generate $18.9 million from its Moscow listing.
On Tuesday, Sun announced that the initial plan was to launch the IPO in Moscow, worth 1.7 billion roubles (or US$18.9 million), in August. The aim was to sell about 20% of Qifa's shares.
"Currently, we're looking at either October or November. This comes following the significant increase in the prime interest rate and amidst a challenging climate in the stock market," Sun shared with Reuters during Russia's Eastern Economic Forum in Vladivostok. "Therefore, we've opted to delay it for the benefit of our potential investors."
Qifa reported a 75% annual increase in its revenue, hitting 5.7 billion roubles in 2023. The majority of this income came from the sales of consumer products like clothing and footwear.
In July, the Central Bank of Russia raised its primary interest rate by 2 percentage points, bringing it to 18 per cent, a peak not seen in over two years. The bank pledged to persist with this monetary tightening until inflation decreases in the excessively vigorous economy.
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