Avantium raises €55 million for its FDCA plant in Delfzijl

The proceeds will fund the start-up of the FDCA plant in Delfzijl, enable the first commercial deliveries and accelerate Avantium’s licensing activities. Investors and banks fully subscribed and underwrote the transaction. Whether the proceeds will be enough to resolve the company’s underlying cash flow problems remains an open question.

Avantium issued 33.6 million new shares at €1.65 apiece, raising €55.45 million. Existing shareholders subscribed for 85.7% of the new shares through the rights issue, and the remaining shares were placed in a rump offering. Participants included Invest-NL (€6.06 million), Pieter Kooi Holding (€5 million) and a group of existing shareholders and new investors who contributed €13.4 million between them. Invest-NL and the banks ABN Amro, BNP Paribas and Stifel underwrote the remaining €42 million.

Scaling up the FDCA plant

Avantium will use the proceeds primarily to scale up production at its FDCA plant in Delfzijl. The plant produces furandicarboxylic acid (FDCA), a bio-based feedstock for sustainable plastics such as PEF. The plant has already produced its first FDCA, and Avantium expects to make its first commercial deliveries by the end of the year. The company has secured 23 offtake agreements and 17 capacity reservations covering more than 150 kilotonnes of annual production capacity. Moving from batch to continuous production remains a challenge and is expected to take 12 to 24 months from start-up.

Financial pressures and risks

Avantium needed the capital increase to cover a projected €33 million working capital shortfall over the next 12 months. At the end of June 2026, Avantium had €23.9 million in cash, down from €57.5 million at the end of 2025. The company posted an EBITDA loss of €18.8 million in the first half of 2026, while revenue fell from €6.7 million to €4.7 million. Technical problems delayed the start-up of the FDCA plant and added €7 million in costs, putting further pressure on the company’s finances.

Political and commercial challenges

Avantium also faces commercial and political risks. Scaling up the plant requires technical solutions as well as approval from customers and government authorities. Avantium has reached a preliminary agreement with the Northern Netherlands Development Agency (NOM) for a €20 million loan. The loan will be paid in four €5 million tranches as Avantium meets specific milestones, including establishing a head office in Groningen. The first tranche is expected on 1 March 2027 at the earliest, subject to approval by the province of Groningen and the Dutch government.

Impact on shareholders and market value

The capital increase significantly diluted shareholders who did not participate. The issue price of €1.65 per share was well below the theoretical ex-rights price (TERP) of €2.6143, based on the closing price of €3.90 on 27 October 2026. The subscription rights traded at €0.60, well below their theoretical value of €1.29, suggesting selling pressure. On 12 November 2026, Avantium’s market capitalisation was €71.4 million, with shares trading at €1.95.

How much time does the capital raise buy?

Avantium still faces significant challenges after completing the capital increase. The Delfzijl plant has yet to demonstrate that it can produce at scale, and the company expects its first commercial deliveries at the end of 2026. Analysts and market commentators have questioned whether the plans are feasible, particularly given Avantium’s reliance on customer payments once the plant reaches stable production. The capital increase gives Avantium some breathing room, and the company also hopes to use the proceeds to accelerate its licensing activities. Its underlying cash flow problems persist, and the path to profitability remains uncertain.