Nuplex has ditched plans to raise money from institutions and will instead attempt to raise even more cash from its existing shareholders.
Nuplex had attempted to raise $110 million, partly from institutional investors and partly from shareholders.
The debt-laden plastics maker needs the money to satisfy its bankers, but the offer failed to gain the support of institutions.
Nuplex says it will instead try to raise $132.8 million by issuing new shares to existing shareholders, offering seven new shares for every one existing Nuplex share, at 23 cents each.
Shareholders who do not not take up the offer will see their holding heavily diluted.
Analysts say Nuplex is a good bet long term, but is under pressure in the near term because of fall global demand for its products, a sharp fall in the New Zealand dollar, and high debt levels.
The offer opens on 2 April and closes on 20 April.
The share price closed down 56 cents on Friday at 51 cents.