March 19 (Reuters) - Shares in Synthomer soared 68% on Thursday after the company said it was making progress on refinancing talks with lenders and that it was passing on increases in raw material
Synthomer shares soar as debt talks progress, equity raise ruled out
Synthomer's Financial Developments and Market Response
Debt Refinancing Progress and Equity Raise Decision
March 19 (Reuters) - Specialty chemicals supplier Synthomer ruled out a new equity raise on Thursday, saying it was making progress on debt refinancing talks as it aims to bolster its balance sheet, sending shares soaring.
Its shares were up 51% at 27.2 pence at 0919 GMT, after having risen more than 94% earlier in the day.
Price Adjustments Amid Global Conflict
The UK-headquartered company also said it was raising prices to pass through significant increases in underlying raw materials and energy costs since the start of the U.S.-Israeli war against Iran.
Shareholder Concerns and Stock Performance
Synthomer's stock last month dropped nearly 49% as investors fretted over dilution of their shareholding after the company said it was considering the possibility of raising fresh equity, alongside other options, in a bid to support its refinancing.
The shares have suffered years of steep declines and their value is still only a small fraction of their August 2021 peak of about 42 pounds.
Company Statement on Equity and Refinancing
"The board does not currently intend to issue new equity and is focused on concluding the debt refinancing process alongside the divestment programme," the company said on Thursday.
Guidance and Trading Update
GUIDANCE REAFFIRMED, TRADING STEADY
Synthomer, which is yet to report 2025 results, also reaffirmed its expectations for continuing revenue of about 1.74 billion pounds ($2.31 billion) and recurring core earnings of between 135 million and 138 million pounds last year, as tight cost savings help offset softer demand and tariff-related disruptions.
Impact of Global Events on Operations
While the Iran conflict has unsettled industries globally, pushing up energy prices, raising costs, squeezing margins and constraining supplies of critical raw materials, Synthomer said trading since the start of 2026 has remained in line with expectations.
The company, which operates across Europe, North America, the Middle East and Asia, said its Middle East operations were running as usual with global supply chains remaining robust so far, though it was monitoring the situation closely.
Sales volumes in several product areas globally have also increased, it said.
Additional Information
($1 = 0.7546 pounds)
(Reporting by Raechel Thankam Job and Yadarisa Shabong in Bengaluru; Editing by Nivedita Bhattacharjee and Andrei Khalip)
