Fidelidade to launch IPO in 2025

The Chinese-controlled Portuguese insurer Fidelidade is planning to float on the Lisbon stock market in 2025.

This is according to online news site ECO whose various sources have informed that interested parties will be presented with an estimated starting value for the company, whose main shareholder is the Chinese conglomerate Fosun with nearly 85%, at €3Bn. In its financial report for 2023, the insurer confirmed that it was preparing to disperse its capital on Euronext Lisbon for a flotation in 2025.
According to business title Negócios, the company’s estimated €3Bn price tag will be presented to potential investors such as private equity and pension funds.
Other shareholders in Fidelidade include State-owned bank Caixa Geral de Depósitos (15%) with 0.02% belonging to current and former employees.
The update on the IPO comes after the private health company Luz Saúde, which is controlled by Fidelidade, announced this week that it was temporarily shelving plans to float on the stock market because investor interest, while high, had undervalued the company.
The final configuration of the distribution of capital is open, but the intention of the current shareholders is, according to ECO, to retain control and the management of Fidelidade.
For this reason, it may follow the example of the Luz Saúde IPO operation where the basic idea was and continues to be selling off around 20% of the 99% capital that Fidelidade has in the healthcare group.
Fidelidade had an own capital profitability of 6.9% in 2023, while its combined ratio fell from 98% to 93.8%. It has 8,700 employees of which 41% work in Portugal where it has business stakes through Fidelidade, Via Directa (Ok! Seguros), Multicare, Fidelidade Assistênce, and others.
The insurer also has a presence in Angola (12.4% market share) and Mozambique (15.1% market share).
It also has Garantia in Cape Verde and, through its shareholder Fosun, has Fidelidade Macau.
All told, Fidelidade has a global coverage in 13 countries including Peru (La Positiva), Bolivia (with Allianza), Alianza Garantia in Paraguay, and FID in Chile.
As a group, Fidelidade was considered the fourth best insurer in the world and the second best in Europe by the ranking ESG from Morningstar Sustainalytics.