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Fidelidade IPO Could Top €3 Billion
11 Feb
Summary
- Fidelidade IPO may exceed €3 billion valuation.
- AI fears trigger sell-off in wealth management stocks.
- Fosun International controls Portuguese insurer Fidelidade.
Fidelidade-Companhia de Seguros SA, the Portuguese insurer majority-owned by China's Fosun International Ltd., is reportedly preparing for a potential initial public offering (IPO) on the Lisbon stock exchange. Preliminary work suggests a valuation exceeding €3 billion, with discussions involving banks and investors for a possible listing in early 2026. While these plans are in their early stages and may not materialize, they could offer a much-needed boost to Euronext Lisbon, which has seen limited IPO activity.
In parallel, the wealth management sector is experiencing significant market volatility driven by fears surrounding artificial intelligence. A new AI tool capable of creating tax strategies has sparked a sell-off in wealth-management stocks, with companies like Raymond James Financial Inc., Charles Schwab Corp., and LPL Financial Holdings Inc. seeing substantial drops. Analysts express high uncertainty regarding AI's future impact on these businesses, fearing it could disrupt traditional models, compress fees, and shift market share. This sentiment has also affected other sectors recently, though some have shown signs of recovery.
