Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: Chinese Digital Platform Aims for Later Launch Following Financial Shifts
Qifa, a Chinese digital platform emphasizing trade between Russia and China, postpones its initial public offering (IPO) in Moscow due to high interest rates. The company had initially intended to garner approximately US$18.9 million from its Moscow listing.
On Tuesday, Sun announced that the initial plans for the IPO in Moscow, valued at 1.7 billion roubles (US$18.9 million), were made in August. The objective was to sell approximately 20% of Qifa's shares.
"Currently, we're in October or November. This follows the significant increase in the prime interest rate and the overall conditions in the stock market have worsened," Sun conveyed to Reuters at Russia's Eastern Economic Forum in Vladivostok. "Hence, thinking about our future investors, we made the decision to delay it."
Qifa reported a 75 percent increase in its annual revenue for 2023, reaching 5.7 billion roubles. The majority of this revenue was generated from sales of consumer products like clothing and footwear.
In July, the Central Bank of Russia escalated its principal interest rate by 2% to reach 18%, marking the highest increase in over two years. The bank has pledged to persist in this restrictive approach until inflation levels decrease in the excessively heated economy.
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