Business
Qifa’s Moscow IPO Postponed Amid Rising Interest Rates: A Stall in the China-Russia Trade Bridge
Qifa, a Chinese digital platform, postpones its Moscow IPO due to soaring interest rates. The company, specializing in Sino-Russian trade, initially aimed to secure $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) in August. The intention was to sell approximately 20% of Qifa's shares.
"Currently, it's either October or November. This period follows the significant increase in the prime interest rate, and coincides with a challenging phase in the stock market," Sun mentioned to Reuters, at the periphery of Russia's Eastern Economic Forum in Vladivostok. "Therefore, we chose to delay it for our prospective investors."
Qifa reported a 75% annual increase in its revenue in 2023, reaching 5.7 billion roubles. The majority of this revenue was generated from the sales of consumer items like clothing and footwear.
In July, the Central Bank of Russia raised its primary interest rate by 2% to 18%, a peak not seen in over two years. The bank pledged to maintain this upward trend until the inflation rates in the excessively buoyant economy are reduced.
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