Lenzing completes €301.2 million capital increase

Lenzing has successfully completed a capital increase, raising a gross amount of €301.2 million through the issuance of 34,756,362 new shares at a price of €8.65 each. Approximately 99 percent of the offered shares were subscribed via preferential subscription rights by existing shareholders, with the remaining shares placed directly into the market by the consortium banks. The funds are earmarked to support the company’s ‘Grow Nonwovens, Reset Textiles’ strategy and to strengthen its capital structure.

In a related operational update, the company has postponed the closure of its Heiligenkreuz plant. Production at the facility is now expected to continue until the end of the first quarter of 2027. This delay is intended to facilitate the transfer of manufacturing activities to other locations and ensure uninterrupted supply to customers.

Despite the successful financing, Berenberg has downgraded its rating for Lenzing from ‘Buy’ to ‘Hold’, lowering the price target from €29.50 to €17.00. The company aims for mid-term targets including an EBITDA increase of €150 million and an EBITDA margin of 20.00 to 25.00 percent.