Business
Qifa Postpones Moscow IPO Amidst Rising Interest Rates: Chinese Digital Platform Adjusts Strategies as Trade Environment Shifts
The Chinese digital firm Qifa has postponed its Moscow IPO due to the impact of high interest rates. Qifa, a company centered around trade between China and Russia, had previously aimed to generate $18.9 million from its Moscow stock market listing.
On Tuesday, Sun announced that the initial plan was to launch an 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, we're in either October or November. This time follows the significant increase in the primary interest rate, and the stock market conditions have become more challenging," Sun explained to Reuters during Russia's Eastern Economic Forum in Vladivostok. "Therefore, with our future investors in mind, we've chosen to delay it."
Qifa reported a 75% increase in its revenue to 5.7 billion roubles in 2023 compared to the previous year. The majority of the revenue was generated from the sale of consumer items, including clothing and footwear.
In July, the Central Bank of Russia raised its principal interest rate by 2% to 18%, a peak not seen in over two years. The bank also pledged to persist with these increases until inflation levels decrease in the excessively robust economy.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.