Austrian fibre producer Lenzing AG is moving ahead with a €300 million capital increase aimed at reinforcing its financial position and supporting the implementation of its “Grow Nonwovens, Reset Textiles” strategy.
The company’s Management Board approved the equity offering with the consent of its Supervisory Board, following authorisation granted at an Extraordinary General Meeting on August 25, 2026. The transaction will be conducted through a cash capital increase with subscription rights for existing shareholders.
The offering has been fully underwritten by the participating banks based on commitments from Lenzing’s indirect majority shareholders, B&C Group and Suzano S.A., as well as Oberbank AG. Lenzing expects gross proceeds of approximately €300 million, providing additional liquidity and strengthening its capital structure.
New shares and subscription terms
Lenzing plans to issue 34,756,362 new no-par-value bearer shares, carrying dividend rights from January 1, 2026. The subscription price has been set at €8.65 per share.
Based on Lenzing’s September 30 closing price, the subscription price represents a 42.50% discount to the theoretical ex-rights price.
Existing shareholders will receive one subscription right for each share held at 11:59 p.m. CEST on October 1. Under the 10-for-9 subscription ratio, holders of 10 existing shares, or the equivalent number of rights, can subscribe for nine newly issued shares.
Unused rights will not qualify for compensation. However, the rights can be transferred and traded on the auction market of the Official Market of the Vienna Stock Exchange during the designated trading period.
Any shares left after the subscription process may subsequently be placed with selected institutional and other qualified investors through an international private placement. The price in that placement will not be below the €8.65 subscription price.
Major shareholders commit to participation
The Lenzing capital increase has received significant backing from its existing shareholders. B&C Group and Suzano currently indirectly control approximately 52.25% of Lenzing’s share capital and have committed to subscribe for 18,159,291 new shares in proportion to their existing holdings, subject to customary conditions.
As part of the arrangement, Suzano will transfer subscription rights covering 1,757,754 new shares to a B&C Group company, which has committed to exercise those rights.
Suzano is expected to invest approximately €22.5 million in the capital increase. Exercise of the syndicate’s subscription rights would generate around €157.1 million in gross proceeds.
Oberbank, which owns approximately 3.87% of Lenzing, has separately committed to subscribe for 1,344,168 new shares, representing approximately €11.6 million.
Following completion, B&C Group is expected to indirectly hold about 39.64% of Lenzing, while Suzano’s indirect stake would stand at approximately 12.60%.
Both the shareholder syndicate and Oberbank have agreed to six-month lock-up arrangements, subject to customary exceptions.
Subscription period begins in October
The Lenzing capital increase remains subject to publication of a prospectus approved by the Austrian Financial Market Authority.
The subscription period is expected to run from October 6 through October 20, 2026, with Erste Group Bank AG acting as subscription agent. Subscription rights are expected to trade from October 6 to October 14 under ISIN AT0000A3XCR6.
Lenzing shares are expected to trade ex-rights from October 2.
Subject to registration of the capital increase with the Austrian Commercial Register, delivery and settlement of the new shares and their trading under Lenzing’s existing ISIN AT0000644505 on the Prime Market of the Vienna Stock Exchange are expected to begin on October 23.
The company has reserved the right to terminate the offering.
