Business
Qifa’s Moscow IPO Delayed Amid High Interest Rates: A Blow to Russo-Chinese Digital Trade Expansion Plans
The initial public offering (IPO) in Moscow by Chinese digital platform Qifa is postponed due to high interest rates. Qifa's business is centered around commerce between China and Russia, and it had been aiming to generate US$18.9 million from this listing in Moscow.
On Tuesday, Sun announced that the initial plan was to launch an IPO in Moscow, valued at 1.7 billion roubles (equivalent to 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 atmosphere in the stock market," Sun shared with Reuters while at the Eastern Economic Forum in Vladivostok, Russia. "Therefore, thinking of our potential investors, we made the decision to delay it."
Qifa reported that its earnings soared by 75 per cent annually to 5.7 billion roubles in 2023. The majority of the revenue came from the sale of consumer items like clothing and footwear.
The central bank of Russia raised its primary interest rate by 2% to reach 18% in July, marking the highest increase in over two years. The bank has committed to maintaining this upward trend until the inflation rates in the excessively robust economy decrease.
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