Business
Qifa Postpones Moscow IPO Amidst High Interest Rates: A Delayed Move for the Chinese Digital Platform Amidst Russian Economic Climate
Qifa, a Chinese online platform specializing in trade between China and Russia, has postponed its Moscow Initial Public Offering (IPO) due to high interest rates. The company had intended to generate $18.9 million from its Moscow listing.
On Tuesday, Sun announced that the IPO in Moscow, initially slated for August, was worth 1.7 billion roubles (equivalent to US$18.9 million). The aim was to sell approximately 20% of Qifa's shares.
"Currently, we're looking at either October or November. This is subsequent to the significant increase in the prime interest rate and amidst a challenging climate in the stock market," Sun expressed to Reuters during the Eastern Economic Forum in Vladivostok, Russia. "Therefore, in consideration of our prospective investors, we've decided to delay it."
Qifa reported a 75% annual increase in its revenue in 2023, reaching 5.7 billion roubles. The majority of this income came from the sale of consumer products like footwear and apparel.
In July, the Central Bank of Russia significantly increased its primary interest rate by 200 points, bringing it up to 18%. This is the highest it's been in over two years. The bank has committed to persisting with this approach until the inflation rates in the excessively robust economy are reduced.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.