Lenzing announces 300 million euro capital increase for restructuring

Lenzing AG has announced a capital increase aiming to raise approximately 300 million euros through the issuance of 34.76 million new shares. The subscription price is set at 8.65 euros per share, representing a 42.5 percent discount on the theoretical price without subscription rights based on recent closing prices.

The capital raise is intended to fund a strategic realignment. This restructuring involves expanding the company’s nonwovens, premium textile, pulp, and biorefinery businesses while withdrawing from the standard fiber market. As part of this shift, the company plans to cut approximately 2,000 jobs worldwide.

Major shareholders, including the B&C Group and Brazil’s Suzano S.A., have committed to exercising all their subscription rights. Oberbank AG has also pledged to exercise its full rights. The subscription ratio is set at 10 to 9, meaning holders of 10 existing shares are entitled to subscribe for 9 new shares. The subscription period is expected to run from October 6 to October 20, 2026.

Following the announcement, Lenzing’s stock experienced significant volatility, dropping as much as 14.6 percent to its lowest level since 2009. Investor representatives have criticized the low subscription price, noting that shareholders who do not participate will face substantial dilution.