Portugal's Fidelidade calls off IPO of healthcare arm
Two weeks ago, Fidelidade said it planned an Initial Public Offering (IPO) of Luz Saude on Lisbon's stock exchange, which would include selling a minority stake and a capital increase of 100 million euros ($107.03 million). In its statement on Tuesday it said it had dropped the plan following an assessment of instability in capital markets, aggravated by tensions in the Middle East.
Portuguese insurance company Fidelidade, controlled by China's Fosun, has decided to abandon a planned listing of its healthcare arm Luz Saude because of capital markets instability driven by tension in the Middle East, it said on Tuesday. Two weeks ago, Fidelidade said it planned an Initial Public Offering (IPO) of Luz Saude on Lisbon's stock exchange, which would include selling a minority stake and a capital increase of 100 million euros ($107.03 million).
In its statement on Tuesday it said it had dropped the plan following an assessment of instability in capital markets, aggravated by tensions in the Middle East. "Market conditions to allow a correct valuation of the asset (Luz Saude) are not met," Fidelidade said, adding the main global stock indexes had lost value in recent days.
The insurance company said it would maintain its "commitment to the sustainability and long-term growth of the Luz Saude business" and would continue to evaluate options to "generate value". An IPO would have marked a return of Luz Saude to the stock market after the healthcare group stopped trading on Euronext Lisbon in 2018.
Luz Saude's net profit rose 16.4% to 31.3 million euros in 2023, supported by a 11.3% increase in operating income to 667 million euros. Fidelidade is 85% owned by Fosun International, while state-owned Caixa Geral de Depositos has the remaining 15%.
Fosun was also studying the potential for a partial IPO of Fidelidade, probably in 2025, a spokesperson for the insurance company told Reuters a month ago. ($1 = 0.9343 euros)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
ALSO READ
UAE a reliable partner and trade gateway to Middle East, Gulf countries: Costa Rican Trade Minister
TREASURIES-US bonds rally on reports of Middle East missile strike
GLOBAL MARKETS-Stocks sink, oil surges on reports of Middle East attacks
Mainland China and Hong Kong stocks fall on Middle East tensions
GLOBAL MARKETS-Stocks sink, oil jumps as Middle East attack reports unnerve markets