Business
Qifa’s Moscow IPO Postponed Amid High Interest Rates: A Delayed $18.9 Million Venture Amid Rising Russian Economic Challenges
Qifa, the Chinese digital platform, postpones its Moscow IPO due to soaring interest rates. The platform, which concentrates on commerce between China and Russia, aimed to generate $18.9 million from its Moscow listing.
On Tuesday, Sun announced that the IPO in Moscow, initially scheduled for August and valued at 1.7 billion roubles (approximately US$18.9 million), aimed to sell about 20% of Qifa's stocks.
"Currently, we're looking at a timeframe of either October or November. This is subsequent to the increase in the critical interest rate and with the stock market becoming increasingly challenging," Sun disclosed to Reuters during Russia's Eastern Economic Forum in Vladivostok. "Hence, in consideration of our potential investors, we've decided to delay it."
Qifa reported that its income soared by 75% annually, reaching 5.7 billion roubles in 2023. The majority of this revenue came from the sale of consumer products like footwear and apparel.
In July, the Central Bank of Russia elevated its prime interest rate by 2% to 18%, marking the highest increase in over two years. The bank has pledged to continue this upward trend until inflation levels decrease within its excessively heated economy.
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