Shareholders lobby group VEB has warned investors to beware when plastic pipe-maker Wavin is floated on the stock exchange in Amsterdam later this week. The company is in an ‘extremely fragile financial position,’ the VEB said in a press release, refering to the company’s debts of €900 mln.

Wavin, which is active in 27 countries, is to use the proceeds of the share issue to reduce its debts. ‘Even if the launch is a success, the debt will still be about three times shareholders’ equity,’ the VEB said.