Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: Chinese Digital Platform Delays $18.9 Million Listing
Qifa, a Chinese digital platform that specializes in Russia-China trade, has postponed its Moscow Initial Public Offering (IPO) due to soaring interest rates. The company initially 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, worth 1.7 billion roubles (equivalent to US$18.9 million), in August. The objective was to sell 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 the overall climate in the stock market has toughened," Sun stated to Reuters while on the fringes of Russia's Eastern Economic Forum in Vladivostok. "Therefore, we resolved to delay it for our prospective investors."
Qifa reported a 75 per cent increase in its annual revenue in 2023, reaching 5.7 billion roubles. The primary source of this income was the sale of consumer items like clothing and footwear.
In July, the central bank of Russia raised its principal interest rate by 2% to 18%, marking the peak in over two years. The bank has pledged to persist with these increases until inflation rates decrease in their excessively buoyant economy.
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