Business
Qifa’s Moscow IPO Delay: High Interest Rates Hinder Chinese Digital Platform’s $18.9 Million Bid
Qifa, a Chinese digital platform specializing in Sino-Russian trade, has postponed its Moscow IPO due to soaring interest rates. The company had intended to generate $18.9 million from the Moscow listing.
On Tuesday, Sun announced that the initial plan was to launch the 1.7-billion-rouble (approximately US$18.9 million) IPO in Moscow in August, with an aim to sell about 20% of Qifa's shares.
"Currently, we're looking at a timeline of October or November. This comes in the wake of the significant increase in the primary interest rate and amidst a challenging climate in the stock market," Sun relayed to Reuters during a casual conversation at the Eastern Economic Forum in Vladivostok, Russia. "Therefore, with our prospective investors in mind, we've chosen to delay it."
Qifa reported that its revenue skyrocketed by 75 percent annually, reaching 5.7 billion roubles in 2023. Majority of this revenue came from the sales of consumer items like clothing and footwear.
In July, the Central Bank of Russia raised its principal interest rate by 2% to 18%, the most significant increase in over two years. They promised to maintain this upward trend until the inflation rates in the excessively booming economy decrease.
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