Portugal's Fidelidade gets shareholder approval for healthcare arm Luz Saude IPO
22/12/2023 15:09
By Sergio Goncalves
LISBON, Dec 22 (Reuters) - Shareholders of Portuguese
insurer Fidelidade on Friday approved a potential initial public
offering of its healthcare arm Luz Saude, which could take place
in the first quarter of 2024, a spokesperson at the insurer
said.
Reuters first reported in May that Fidelidade, which is
controlled by China's Fosun International 0656.HK , was
sounding out banks to manage a stock market listing of Luz Saude
that could value the healthcare unit at around 1 billion euros
($1.10 billion), despite sluggish IPO markets.
Sources have said that Fidelidade aims to raise at least 300
million euros from the sale of a minority stake in Luz Saude,
which is one of the main private healthcare groups in Portugal
with 14 hospitals and 14 clinics.
A Fidelidade spokesperson said that the general meeting of
shareholders "unanimously" approved on Friday all the points
being voted on, which included the listing of all Luz Saude
shares on Euronext Lisbon.
"In mid-January, Fidelidade will evaluate with the banks
whether there are market conditions to move forward with the IPO
and, if there are conditions, then the operation could take
place in the first quarter of 2024," the spokesperson said.
He said shareholders also approved a capital increase in Luz
Saude of up to 20% of its capital, which will be subscribed by
professional investors, national and international, selected
through a "bookbuilding" process.
An IPO would mark Luz Saude's return to the stock market
after the healthcare group stopped trading on Euronext Lisbon in
2018.
For Portugal, whose main bourse has not seen any new
listings since 2021, Luz Saude's IPO would be a major win,
making it the biggest domestic flotation since Correios de
Portugal CTT.LS in 2013.
Luz Saude's net profit rose 62% to 26.9 million euros in
2022, supported by a 10.6% increase in operating income to 600
million euros.
Fidelidade is 85% owned by Fosun International, while
state-owned Caixa Geral de Depositos has the remaining 15%.
($1 = 0.9076 euros)
(Reporting by Sergio Goncalves; Editing by Susan Fenton)
((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters
Messaging: sergio.goncalves.reuters.com@reuters.net))