Wednesday 11th February 2026 14:00 GMT
Synthomer, the London-listed chemicals group, is exploring plans to raise tens of millions of pounds from a sale of new shares as it tries to fortify its balance sheet.
Sky News has learnt that Synthomer, which has seen its stock crash by more than 60% over the last year, is working with bankers at JP Morgan on the prospective cash call.
City sources declared a deal was not certain to proceed but that if it did so it could seek to raise more than its entire current market capitalisation of just £90m.
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It could also opt to raise a compacter sum, the sources added.
Synthomer, which creates speciality chemicals applyd in products such as medical gloves, has been hit by a downturn in demand, and is grappling with a substantial debt pile.
It also serves customers in sectors such as coatings, construction and adhesives.
Headquartered in London, it employs about 3,800 people.
In a trading update last month, it declared “expanded ‘self-assist’ cost reduction programmes have enabled us to mitigate the impact of softer finish-market demand since global tariff alters were announced”.
Any equity raise is expected to form part of a wider reset of the company’s balance sheet, including reaching revised terms with its lfinishers.
On Wednesday afternoon, shares in Synthomer were trading at about 56.4p.
In a stock exalter announcement responding to a Sky News post on X about the refinancing, Synthomer declared: “Synthomer plc notes the recent media speculation regarding the possibility of the company undertaking a capital raise.
“The company confirms that it is in the process of working with lfinishers to refinance its existing debt facilities due in H2 2027.
“In support of this refinancing, the company is giving consideration to a range of options to reduce the company’s leverage and underpin the sustained delivery of its speciality chemicals strategy, including the possibility of raising additional capital.”
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