Lenzing raises 301 million euros to fund corporate overhaul

Austrian fibre producer Lenzing AG has raised 301.2 million euros through a capital increase, with existing shareholders subscribing to 99% of the new shares, ORF reported. The funds will support a major restructuring of the company.

Lenzing issued 34,756,362 new shares at 8.65 euros each. A consortium comprising the B&C Group and Brazilian pulp producer Suzano subscribed to about 52% of the offer, while Oberbank took just under 4%. The remaining shares that were not taken up were sold on the market by the underwriting banks, Lenzing said.

The company said the proceeds would provide greater financial flexibility and support its strategy, “Grow Nonwovens, Reset Textiles”. The plan is to expand its nonwovens business, focus its textiles business on premium segments and strengthen strategic partnerships.

In the long term, Lenzing aims to increase EBITDA by 150 million euros, achieve an EBITDA margin of 20% to 25% and reduce net debt to less than 2.5 times EBITDA. The new shares are expected to begin trading on the Vienna Stock Exchange on October 23, 2026.