2BE - Tubi Limited

[System]

Tubi Limited is a growing mobile manufacturer of High Density Poly Ethylene (HDPe) pipes for use in the oil and gas, irrigation, water, mining and infrastructure sectors.

Tubi currently operates one plant under contract in Texas, in the United States, and has four new plants under construction. Of these four new plants, one is being constructed under contract for a customer in Texas, one for sale to a customer in New Zealand in accordance with a technology licensing agreement and the remaining two plants are intended for use in the United States. Since 2017, Tubi has produced more than 14,000 tonnes of HDPE pipe in New Zealand and the United States.

All of Tubi's technology is developed in-house by its engineering development team led by the Company's founder, Marcello Russo.

It is anticipated that 2BE will list on the ASX during June 2019.

https://tubigroup.com

 

[verce]

From the Prospectus, and something to keep in mind:

Competition Risk – Tubi competes against other HDPE pipe manufacturers, some of which may have significantly more resources to develop new products or may improve existing products to compete directly with Tubi.

It seems this business is based entirely on the economics of their "mobile plant". It can be redeployed as needed.

Anyone got any opinions on the founder selling down their shareholding at this early stage of the business?

 

[verce]

From the Prospectus, and something to keep in mind:

Competition Risk – Tubi competes against other HDPE pipe manufacturers, some of which may have significantly more resources to develop new products or may improve existing products to compete directly with Tubi.

It seems this business is based entirely on the economics of their "mobile plant". It can be redeployed as needed.

Anyone got any opinions on the founder selling down their shareholding at this early stage of the business?

Looks like my instincts were correct. 46% drop today!

 

[Tommy Shelby]

I looked at it pre IPO - liked the story and the financials were really attractive. The only issue was all of the insider dealings between the Directors and their other companies - it was too messy and complicated and then they were changing strategy so the numbers weren't relevant.

I've always subscribed to the sayings about buying into IPOs - missed out on some good performers but for the most part I've avoided losses like this. I've kept it on my watchlist to see if they turn things around but Thursday's announcement didn't give me much hope.

 

[So_Cynical]

If the govt ever gets serious about saving irrigation water in the MIA and Murray then for sure Tubi would get some love - until then.

 

[Tommy Shelby]

Not going well...

 

[Dona Ferentes]

or not Tubi !

VA for a while after that... 23/4 till 06/5. New Directors, dog ate my homework excuses for Appendix 3X Query.