Lenzing launches fully underwritten capital increase targeting 300 million euros

Austrian fiber producer Lenzing has announced a fully underwritten ordinary capital increase against cash contribution with subscription rights for existing shareholders, aiming for gross proceeds of approximately 300 million euros (339 million dollars).

The capital increase supports the execution of the group's corporate strategy, Grow Nonwovens, Reset Textiles, which aims to optimize global production networks and strengthen its financial structure.

Capital increase and strategic objectives

Proceeds from the offering will provide Lenzing with additional financial flexibility. Under the Grow Nonwovens, Reset Textiles framework, the group is expanding its nonwovens segment while sharpening textiles toward differentiated premium segments.

As part of network adjustments, fiber production will cease at the Heiligenkreuz site in Austria by the end of the first quarter of 2027 and at the Grimsby facility in the UK by the end of 2027. Meanwhile, the divestment process for the Purwakarta plant in Indonesia remains ongoing.

Lenzing AG chief executive officer Georg Kasperkovitz said: “With the launch of the capital increase, we are taking a decisive step forward in executing our strategic transformation. The transaction provides us with the financial flexibility required to expand our nonwovens business, reposition our textiles business, and sustainably enhance the competitiveness of the Lenzing Group”.

Alongside the offering, the group has secured new financing of up to 300 million euros and agreed extensions of existing credit facilities through 2030. Over the medium term, Lenzing aims to increase earnings before interest, taxes, depreciation, and amortization (EBITDA) by 150 million euros, achieve an EBITDA margin of 20 percent to 25 percent, and reduce net leverage to below 2.5 times EBITDA.

Key terms of subscription offer

The capital increase will issue 34,756,362 new no-par value bearer shares carrying dividend rights as from January 1, 2026. Set at a subscription price of 8.65 euros per share, the offering represents a discount of 42.50 percent to the theoretical ex-rights price based on the closing price on September 30, 2026.

Shareholders will receive one subscription right per existing share held as of October 1, 2026. The subscription ratio is 10 to 9, allowing shareholders to subscribe for nine new shares for every 10 existing shares held.

The subscription period is scheduled to run from October 6, 2026, to October 20, 2026. Rights will be traded on the Official Market of the Vienna Stock Exchange between October 6, 2026, and October 14, 2026. Any unsubscribed shares will be offered via an international private placement on October 20, 2026.

Shareholder commitments and lock-up agreements

The syndicate comprising majority shareholders B&C Group and Brazilian cellulose supplier Suzano SA, which holds 52.25 percent of Lenzing share capital, has committed to exercise all subscription rights, generating gross proceeds of 157.1 million euros.

Austrian banking institution Oberbank AG, holding 3.87 percent of share capital, will exercise its rights for approximately 11.6 million euros. Both the syndicate and Oberbank have agreed to a six-month lock-up period.

Following completion, B&C Group will hold 39.64 percent and Suzano SA will hold 12.60 percent of Lenzing share capital. The transaction is fully underwritten by Joint Global Coordinators BNP Paribas, UniCredit, Commerzbank, Erste Group Bank AG, and Raiffeisen Bank International.

Settlement, delivery, and trading of the new shares on the Prime Market segment of the Vienna Stock Exchange are scheduled to commence on October 23, 2026.