Business
Qifa’s Moscow IPO Delayed Amid Rising Interest Rates: A Strategic Move in the Sino-Russian Trade Landscape
The Beijing-based online platform Qifa postpones its Moscow Initial Public Offering (IPO) due to high interest rates. Qifa, a company specializing in Russo-Chinese trade, initially intended to secure $18.9 million from its Moscow listing.
On Tuesday, Sun announced that the initial plan was to launch the 1.7-billion-rouble (equivalent to US$18.9 million) IPO in Moscow 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 primary interest rate and when the overall climate in the stock market turned challenging," said Sun to Reuters, while attending Russia's Eastern Economic Forum in Vladivostok. "Therefore, thinking about our prospective investors, we chose to delay it."
Qifa reported a 75 per cent increase in its annual revenue in 2023, reaching 5.7 billion roubles. The majority of this revenue came from the sale of consumer items like clothing and footwear.
In July, the central bank of Russia increased its principal interest rate by 2% to 18%, marking the highest it's been in over two years. The bank has pledged to sustain this trend of escalation until the inflation rates in the excessively robust economy are reduced.
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