Qifa’s Moscow IPO Postponed Amid Rising Interest Rates: A Deferred $18.9 Million Plan for the Chinese Digital Giant

The Moscow IPO of Qifa, a Chinese digital platform, is postponed due to soaring interest rates. Qifa, a company centered on trade between China and Russia, had intended to generate US$18.9 million from its Moscow listing.

On Tuesday, Sun announced that the initial plan was to launch an IPO in Moscow worth 1.7 billion roubles (equivalent to US$18.9 million) back in August. The aim was to sell approximately 20% of Qifa's shares.

"Currently, it's either October or November. This is subsequent to the significant increase in the interest rate and when the overall conditions in the stock market started becoming challenging," Sun informed Reuters during a casual conversation at Russia's Eastern Economic Forum in Vladivostok. "Therefore, considering our prospective investors, we chose to delay it."

Qifa reported a 75% increase in its annual revenue, reaching 5.7 billion roubles in 2023. The majority of this revenue came from the sale of consumer items like apparel and footwear.

In July, Russia's primary bank significantly increased its primary interest rate by 2% to 18%, marking the highest increase in over two years. The bank has committed to maintain this stringent approach until inflation rates decrease in the excessively buoyant economy.