Business
Qifa’s Moscow IPO Postponed Amid Increasing Interest Rates: Trade Platform Adjusts to Unstable Stock Market Environment
The Beijing-based tech platform, Qifa, has postponed its initial public offering (IPO) in Moscow due to soaring interest rates. The company, primarily involved in facilitating trade between Russia and China, had intended to generate $18.9 million from its listing in Moscow.
On Tuesday, Sun announced that the initial plan was to launch an IPO in Moscow worth 1.7 billion roubles (US$18.9 million) in August, aiming to sell approximately 20 per cent of Qifa's shares.
"Currently, it's either October or November. This period follows the crucial increase in the interest rate and coincides with a challenging phase in the stock market," Sun shared with Reuters while at the Eastern Economic Forum in Vladivostok, Russia. "Therefore, thinking about our future investors, we chose to delay it."
Qifa reported a 75 per cent increase in its annual revenue for 2023, amounting to 5.7 billion roubles. The majority of this income was generated from the sale of consumer items like clothing and footwear.
In July, the primary interest rate in Russia was increased by 200 basis points to 18 percent by the country's central bank. This is the highest it has been in over two years. The bank has committed to maintaining this upward trend until the rates of inflation in the overheated economy start to decrease.
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