VLADIVOSTOK, Russia (Reuters) – Digital platform Qifa, which focuses on trade between Russia and China, has delayed its initial public offering on the Moscow Exchange due to high Russian interest rates and a challenging business environment, its founder Sun Tianshu told Reuters on Tuesday.
Sun said the 1.7 billion roubles ($18.9 million) IPO in Moscow had been planned initially in August with sale of around 20% of the company’s shares.
“Now, it’s October or November. That’s after the key interest rate hike and as the general environment on the stock exchange became more difficult. So, for our future investors we decided to postpone it,” Sun Tianshu told Reuters on the sidelines of Russia’s Eastern Economic Forum in Vladivostok.
According to Qifa, its revenue jumped 75% in 2023 to 5.7 billion roubles. Sales of consumer goods, such as shoes and clothes, account for the bulk of revenue.
Russia’s central bank hiked its key interest rate by 200 basis points to 18% in July, the highest level in more than two years, and vowed to continue tightening until inflation rates in an overheated economy come down.
The central bank holds next rates-setting meeting on Sept. 13.
($1 = 89.9955 roubles)
(Reporting by Vladimir Soldatkin; editing by Guy Faulconbridge)
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