Business
Qifa Postpones Moscow IPO Amid Rising Russian Interest Rates: A Delayed $18.9M Bid Amid Economic Challenges
The planned Moscow IPO of Qifa, a Chinese digital platform, has been postponed due to high interest rates. Qifa, a company that specializes in facilitating trade between China and Russia, had initially intended to generate $18.9 million from its Moscow listing.
On Tuesday, Sun announced that the initial plan was to launch the 1.7 billion-rouble (equivalent to US$18.9 million) IPO in Moscow back in August, with the intention of offloading roughly 20% of Qifa's shares.
"Currently, it's either October or November. This is following the substantial increase in the prime interest rate and amidst a challenging atmosphere in the stock market," Sun conveyed to Reuters during a break at Russia's Eastern Economic Forum in Vladivostok. "Therefore, considering our prospective investors, we've chosen to delay it."
Qifa reported that its earnings saw a significant increase of 75 per cent annually, reaching 5.7 billion roubles in 2023. The majority of this revenue came from the sale of consumer products like clothing and footwear.
In July, the central bank of Russia escalated its primary interest rate by 2% to reach 18%, the most significant rate in over two years. The bank pledged to persist with this tightening policy until inflation levels in the excessively buoyant economy decrease.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.