Lenzing's €300 Million Cash Call Opens for Subscription as Berenberg Steps Back

Lenzing subscription rights trade on the Vienna Stock Exchange until 14 October, part of a EUR 300 million capital increase at EUR 8.65 per share.

Trading in the subscription rights of Austrian fibre manufacturer Lenzing began on the Vienna Stock Exchange on Tuesday, opening a two-week window in which investors can buy or sell the entitlements under ISIN AT0000A3XCR6 through 14 October. The subscription period for the new shares also got under way the same day, leaving existing shareholders to decide whether to commit fresh capital or cash out their rights on the market.

The proceeds are earmarked for shoring up the company's balance sheet and bankrolling its "Grow Nonwovens, Reset Textiles" programme, a strategic overhaul intended to steady the core business and widen its operational room to manoeuvre. Lenzing is targeting gross proceeds of roughly EUR 300 million from the cash capital increase, issuing a total of 34,756,362 new shares at a subscription price of EUR 8.65 apiece.

The transaction rests on a resolution passed by an extraordinary general meeting on 25 August. Existing investors may subscribe on a 10:9 ratio — nine new shares for every ten already held.

Anchor Investors Lock In the Deal

Three major shareholders have thrown their weight behind the measure, pledging to exercise every subscription right allotted to them: the B&C Group, Suzano S.A. and Oberbank AG. Their commitment effectively guarantees that a substantial slice of the issue is already placed, and the publication of the official subscription offer has now fixed the formal terms, closing the legal framework around the capital measure.

Not every detail of the timetable lines up neatly across market communications. The subscription window runs from 6 October 2026 to 20 October 2026, while rights may be traded on the exchange only up to and including 14 October 2026. Any new shares left unsubscribed once the period lapses are to be placed through an international private placement, ensuring the full volume is issued.

Berenberg Trims Its Bets

Sentiment on the trading floor has been far from supportive. Selling pressure that set in after the capital increase was announced has shown little sign of easing, and the stock's ex-rights quotation has already inflicted heavy damage on the share price — a single session wiped 29.54% off its value. On the most recent trading day the stock shed a further 1.7%, closing at EUR 13.78, which leaves it hovering just above its 52-week low of EUR 13.14.

Dilution of existing holdings and a shifting market backdrop are weighing on investor mood, compounded by the fact that hoped-for earnings tailwinds from changing raw material prices across the sector have yet to materialise as expected.

Berenberg Bank adjusted its stance on Friday. Analyst Sebastian Bray downgraded the stock from "Buy" to "Hold" and cut his price target sharply, from EUR 29.50 to EUR 17.00. He cited the missing profit boost from higher cotton and viscose prices, the capital increase itself and rising interest rates as the drivers behind the more cautious view. The analysts also flagged concerns about the future commitment of Brazilian major shareholder Suzano S.A. against the backdrop of the upcoming financing steps.

With the guaranteed equity injection now formally under way, the coming weeks will show whether the strengthened capital base is enough to restore investor confidence on a lasting basis.