Business
Qifa’s Moscow IPO Postponed Amid Rising Interest Rates: Chinese Digital Platform Adjusts Plans Amidst Economic Challenges
The Chinese online platform Qifa postpones its Initial Public Offering (IPO) in Moscow due to soaring interest rates. Qifa, a platform that facilitates trade between Russia and China, initially aimed to garner US$18.9 million from its Moscow listing.
On Tuesday, Sun announced that the IPO in Moscow, which is valued at 1.7 billion roubles (approximately US$18.9 million), was originally scheduled for August. The aim was to sell about 20% of Qifa's shares.
"Currently, it's either October or November. This follows the significant increase in the prime interest rate and the stock market has become considerably challenging," Sun commented to Reuters during an offstage conversation at Russia's Eastern Economic Forum in Vladivostok. "Therefore, with our prospective investors in mind, we made the decision to delay it."
As per Qifa, they saw a 75% increase in their annual revenue, reaching 5.7 billion roubles in 2023. The majority of this income was derived from the sale of consumer products like footwear and apparel.
In July, the Central Bank of Russia raised its primary interest rate by 2% to reach 18%, a peak not seen for over two years. It also promised to maintain this upward trend until the inflation rates in their overperforming economy decrease.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.