Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: Impact on Sino-Russian Trade and Future Plans
The digital platform from China, Qifa, postponed its Moscow initial public offering (IPO) due to escalating interest rates. Qifa, a company specialising in commerce between China and Russia, had initially aimed to gather US$18.9 million through its Moscow listing.
On Tuesday, Sun announced that the initial plan was to launch the IPO in Moscow, valued at 1.7 billion roubles (US$18.9 million), in August. The aim was to sell approximately 20% of Qifa's shares.
"Currently, it's either October or November. This is subsequent to the vital increase in interest rates and amidst a more challenging climate in the stock market," Sun conveyed to Reuters during an offstage conversation at the Eastern Economic Forum in Vladivostok, Russia. "Therefore, with our future investors in mind, we've chosen to delay it."
Qifa reported a 75 per cent surge in its annual revenue, reaching 5.7 billion roubles in 2023. The majority of this income came from the sale of consumer products like clothing and footwear.
In July, the Central Bank of Russia raised its primary interest rate by 2% to 18%, marking the highest increase in over two years. The bank has committed to persist in this tightening trend until inflation levels decrease in the excessively active economy.
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