Business
Qifa’s Moscow IPO Postponed Amid Rising Interest Rates: A Blow to Sino-Russian Trade Expansion Plans
The postponement of Moscow's initial public offering (IPO) by Qifa, a Chinese digital platform, is due to soaring interest rates. Qifa, a company specializing in Russia-China trade, had initially aimed to garner US$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 (US$18.9 million), aimed to sell approximately 20% of Qifa's shares.
"Currently, we're in October or November. This period follows the significant increase in the primary interest rate and coincides with a more challenging atmosphere in the stock market," Sun explained to Reuters at the Eastern Economic Forum in Vladivostok, Russia. "Therefore, with our prospective investors in mind, we chose to delay it."
Qifa reported a 75% increase in its annual revenue in 2023, reaching 5.7 billion roubles. The majority of this income came from the sale of consumer items like clothing and footwear.
In July, the central bank of Russia raised its primary interest rate by 2% to 18%, marking the highest it's been in over two years. The bank has promised to keep increasing this rate until the inflation levels in their overactive economy decrease.
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