Fletcher Building (FBU) $4.07

FBU -8.64%: the dual-listed building products company traded for the first time since last Wednesday, spending the long weekend preparing a statement on faulty water pipes that have been causing issues. The issue pertains to plumbing products manufactured by Fletcher Building’s Iplex which were installed between 2017 and 2022. Homebuilder BCG installed the products in around 11,000 homes in WA over that period and has blamed Iplex for a faulty product causing the 10.9% failure rate in the state, however, Fletcher Building has pushed back, citing the 0.19% failure rate for installations on the east coast. BGC has claimed the cost to fix the issue could be over $700m vs FBU predicting under $100m, both companies have conflicting beliefs on the outcome here. FBU shares fell to 6-month lows on the update, a level that will prove good value if Iplex is not found to be the cause of the issue.