Business
Qifa’s Moscow IPO Postponed Amid Rising Interest Rates: Chinese Digital Platform Adjusts to Challenging Stock Exchange Climate
The initial public offering (IPO) in Moscow for Qifa, a Chinese digital platform, has been postponed due to high interest rates. Qifa, a company that concentrates on commerce between Russia and China, had anticipated raising $18.9 million from its Moscow listing.
On Tuesday, Sun announced that the initial plan was to launch the IPO worth 1.7 billion roubles (US$18.9 million) in Moscow back in August. The aim was to sell approximately 20 per cent of Qifa's shares.
"Currently, it's either October or November. This is following the significant increase in the key interest rate and when the overall stock market conditions became challenging," Sun explained to Reuters during an off-stage conversation at Russia's Eastern Economic Forum in Vladivostok. "Therefore, in consideration of our prospective investors, we've decided 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 sales of consumer products like clothing and footwear.
In July, the central bank of Russia escalated its principal interest rate by 2% to 18%, the steepest in over two years. They pledged to persist with these increases until the inflation rates in their excessively buoyant economy decrease.
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