Lenzing Ties Up Financing Through 2030 as Rights Issue Discount Weighs on the Shares

Lenzing stock fell 2.1% to EUR 14.02 after Berenberg downgraded it to Hold, citing dilution from a EUR 300 million rights issue priced at EUR 8.65.

Lenzing shareholders had a rough Friday. The Austrian fibre producer's stock shed 2.1% to close at EUR 14.02, with press reports pointing to two forces at work: the steep discount attached to its upcoming rights issue and a downgrade from Berenberg.

The capital measure at the centre of the story is a fully underwritten cash rights issue expected to raise roughly EUR 300 million in gross proceeds. Lenzing will issue 34,756,362 new shares at a subscription price of EUR 8.65 apiece, with existing holders entitled to buy nine new shares for every ten they already own. The proceeds are earmarked for the company's "Grow Nonwovens, Reset Textiles" strategy, which aims to sharpen the group's focus on higher-margin nonwovens while restructuring the traditional textiles business.

Anchor Investors Step Up

Two major shareholders have already committed to taking up their full allocations. Austria's B&C Group and Brazilian pulp partner Suzano have pledged to subscribe for 18,159,291 of the new shares, providing a firm backstop for a transaction that is fully guaranteed.

Alongside the equity raise, Lenzing has moved to shore up its liquidity. The company has secured additional credit lines of up to EUR 300 million and extended existing financing arrangements through 2030, giving management room to push ahead with its operational overhaul without immediate refinancing pressure.

Berenberg Cuts to Hold, Slashes Target

The downgrade came from Berenberg, which lowered its rating on Lenzing from "Buy" to "Hold" and cut its price target to EUR 17 from EUR 29.50. The analysts flagged dilution from the forthcoming rights issue and uncertainty over operating earnings before interest, taxes, depreciation and amortisation. They also noted that the pass-through of higher raw material costs — particularly for cotton and viscose — to customers has been slower than anticipated, while the interest rate environment and questions over future consensus estimates are weighing on sentiment.

Berenberg also trimmed its EBITDA forecast for the 2026 financial year to EUR 55 million, citing subdued operating margins and the structural consequences of the capital measure.

Key Dates for Shareholders

The timetable for existing investors is now set. Rights trading on the Vienna Stock Exchange runs from 6 to 14 October, while the subscription period opens on 6 October and closes on 20 October. Delivery and the start of trading in the new shares are scheduled for 23 October.

Lenzing has said it will publish third-quarter results on 5 November, giving the market its next hard look at how the current environment is affecting margins.