Qifa’s Moscow IPO Postponed Amid Rising Interest Rates: China-Russia Trade Platform Awaits Favorable Market Conditions

The initial public offering (IPO) in Moscow of Qifa, a Chinese digital platform emphasizing commerce between Russia and China, has been postponed due to soaring interest rates. The company had initially intended to generate US$18.9 million through this listing in Moscow.

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

"Currently, it's either October or November. This is subsequent to the primary interest rate increase and during a time when the overall atmosphere in the stock market has become more challenging," Sun stated to Reuters while at Russia's Eastern Economic Forum in Vladivostok. "Hence, thinking about our prospective investors, we made the decision to delay it."

Qifa reported a 75% increase in its revenue, reaching 5.7 billion roubles in 2023. The majority of this income was generated from the sale of consumer products like clothing and footwear.

In July, the central bank of Russia raised its primary interest rate by 2 percentage points, hitting an 18% high not seen in over two years. The bank has committed to persist with this tightening policy until inflation levels decrease in the excessively robust economy.