Synthomer not planning equity raise, shares rocket
by Michele Maatouk · ShareCastSynthomer surged on Thursday as the specialty chemicals firm said it was not planning an equity raise and that refinancing discussions are proceeding "constructively".
Shares in the company cratered last month on news of the potential capital raise. It said at the time that it in support of a refinancing, it was considering a range of options to reduce leverage "and underpin the sustained delivery of its speciality chemicals strategy, including the possibility of raising additional capital".
However, Synthomer ruled out an equity raise on Thursday as it said discussions with lenders were proceeding "constructively", alongside its "ongoing focus on delivering the broadened divestment programme".
"While the company continues to explore options to support further leverage reduction and underpin the sustained delivery of the speciality chemicals strategy, the board does not currently intend to issue new equity and is focused on concluding the debt refinancing process alongside the divestment programmem," Synthomer said.
It added that Kuala Lumpur Kepong Berhad Group (KLK) - the company’s largest shareholder - remains "very supportive" of its expectations for 2026.
The company also reiterated its 2025 guidance for revenue of around £1.74bn and continuing EBITDA of £135m to £138m. Trading since the start of 2026 is in line with the company's expectations and momentum continues to build, it said.
Synthomer said that while the impact of the conflict in Iran remains uncertain, it is passing on the significant increases in underlying raw materials and energy costs via pricing adjustments.
The company's joint venture manufacturing operation and sales office in the Middle East are both currently operating as normal and its global supply chains have remained "robust" to date, it said, although it is monitoring the situation closely.
At 0940 GMT, the shares were up 51% at 27.20p.