Business
Qifa’s Moscow IPO Delayed Amid Rising Interest Rates: A Strategic Move to Protect Future Investors
The initial public offering (IPO) in Moscow by Qifa, a Chinese digital platform, has been postponed due to soaring interest rates. Qifa, which is centered on commerce between Russia and China, had intended to garner US$18.9 million from its Moscow listing.
On Tuesday, Sun announced that the initial plan was to launch the IPO in Moscow, valued at 1.7 billion roubles (US$18.9 million), in August. The aim was to sell approximately 20% of Qifa's shares.
"Currently, it's either October or November. This period comes after the significant increase in the prime interest rate and during a challenging climate in the stock market," Sun mentioned to Reuters while attending Russia's Eastern Economic Forum in Vladivostok. "Therefore, we have chosen to delay it for the benefit of our prospective investors."
Qifa reported a 75% annual increase in its revenue, reaching 5.7 billion roubles in 2023. The majority of this income was generated from the sale of consumer items, including clothing and footwear.
In July, Russia's primary bank significantly increased its principal interest rate by 2 percent to reach 18 percent, a peak not seen in over two years. The bank has committed to maintaining this upward trend until the inflation rates decrease in an excessively buoyant economy.
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