Business
Qifa’s Moscow IPO Delayed Amid High Interest Rates: A Strategic Shift in China-Russia Trade Dynamics
Qifa, a Chinese digital platform, postpones its Moscow IPO due to soaring interest rates. The platform, primarily dealing with commerce between China and Russia, initially aimed to generate US$18.9 million from its Moscow listing.
On Tuesday, Sun announced that the initial plan was to launch an IPO in Moscow worth 1.7 billion roubles (approximately US$18.9 million) in August, with an aim to sell about 20 per cent of Qifa's shares.
"Currently, we're looking at October or November. This comes following the significant increase in the primary interest rate and amid a challenging climate on the stock market," Sun mentioned to Reuters during his attendance at Russia's Eastern Economic Forum in Vladivostok. "Thus, considering our future investors, we've chosen to delay it."
Qifa reported a 75% annual increase in its revenue, reaching 5.7 billion roubles in 2023. The majority of this income came from the sale of consumer items like footwear and apparel.
In July, the central bank of Russia escalated its primary interest rate by 2% to reach 18%, the most significant increase witnessed in over two years. The bank has also committed to maintaining this upward adjustment until the inflation rates in the excessively heated economy reduce.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.