Business
Qifa Postpones Moscow IPO Amid Rising Interest Rates: The Impact on Sino-Russian Trade
The initial public offering (IPO) in Moscow of Qifa, a Chinese digital platform with a concentration on Sino-Russian trade, has been postponed due to high interest rates. The company had initially intended to garner $18.9 million from this listing in Moscow.
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), back in August. The aim was to sell approximately 20% of Qifa's shares.
"Currently, it's either October or November. This is following the significant increase in the key interest rate and amid a challenging climate in the stock market," Sun informed Reuters while attending Russia's Eastern Economic Forum in Vladivostok. "Therefore, thinking about our prospective investors, we've chosen to delay it."
Qifa reported that its income saw a 75 per cent surge year on year, reaching 5.7 billion roubles in 2023. The majority of this revenue came from the sale of consumer items, including footwear and apparel.
In July, the central bank of Russia raised its principal interest rate by 2% to 18%, marking its peak in over two years. They made a firm commitment to keep increasing it until the inflation rates in their over-stimulated economy decrease.
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