Business
Qifa’s Moscow IPO Postponed amid Rising Interest Rates: A Delayed $18.9 Million Venture Amidst Russian Economic Turbulence
The launch of Qifa's initial public offering (IPO) in Moscow has been postponed due to high-interest rates. Qifa, a Chinese digital platform that specializes in trade between China and Russia, had intended to generate $18.9 million from its Moscow listing.
On Tuesday, Sun announced that the IPO in Moscow, which was initially scheduled for August and worth 1.7 billion roubles (US$18.9 million), aimed to sell approximately 20% of Qifa's shares.
"Currently, it's either October or November. This is following the significant increase in the primary interest rate and during a time when conditions in the stock market have become more challenging," Sun stated to Reuters during an off-stage conversation at Russia's Eastern Economic Forum in Vladivostok. "Therefore, considering our future investors, we've opted to delay it."
Qifa reported a 75% annual increase in its revenue, reaching 5.7 billion roubles in 2023. The majority of this income came from the sale of consumer items like clothing and footwear.
In July, the Central Bank of Russia increased its primary interest rate by 2% to reach 18%, the most significant rate in over two years. The bank has promised to keep escalating these rates until the inflation within their robust economy decreases.
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