star water group looks set to IPO

Start-up stormwater company STAR Water Group is moving ahead with an initial public offering (IPO) as the company looks to scale up.

One small step biofiltration

Start-up STAR (Stormwater Treatment and Reuse) Water Group is moving ahead to take the company public with an initial public offering (IPO) to help fund its growth.

STAR Water Group, which makes both biofiltration technology and bioretention systems, is aiming to raise between US$700,000 to US$1 million in its public offering as it values its equity at $4.9 million.

Listing on the Sydney Stock Exchange, the company is commercialising a series of patented filtration products that remove toxic pollutants from stormwater runoff to better streamline water reuse.

The company’s IPO will follow in the footsteps of Dutch start-up NX Filtration which raised €165 million through its IPO and allowed the company to invest in its mega membrane factory.

Meet stormwater's new star?

STAR Water Group produces products that remove pollutants and contaminants from stormwater and runoff using up to 100 per cent recycled materials.

Based in North Sydney, Australia, it has developed a process by which recycled materials are examined through its patented Kalkulus computer modelling tool that can solve community issues.

“We solve multiple community issues starting with waste and water security where our systems can capture water, clean it up and make it available for reuse.”

The bio-filtration technologies use these recyclable products to remove pollutants like heavy metals, toxic compounds, and microplastics from stormwater to protect waterways and capture runoff from urban, industrial, agricultural and mining environments.

“We solve multiple community issues starting with waste and water security where our systems can capture water, clean it up and make it available for reuse as supplemented water supply in cities around the world,” said Chris Rochfort, CEO of STAR Water Group.

Green stocks are growing

One of the biggest growing trends at the moment in the investment world are environmental, social, and corporate governance (ESG) investments or 'green stocks'.

2021 was the year of ESG investments with a record $649 billion being poured into ESG-focused funds worldwide, according to Reuters.

“There has been a major shift in the financial markets over the last two years to recognise green technologies and ESG requirements,” Rochfort said on listing the company.

STAR Water group will be listed on the Sydney Stock Exchange (SSX) which is aligned with the UN Sustainable Stock Exchanges programme, which entices investors to invest in green stocks.

The springboard in action

A graduate of The Water Council's start-up BREW (Business, Research & Entrepreneurship in water accelerator program, this is the first time an alumnus of the Milwaukee-based programme has gone public.

Back in 2017, The Water Council invested $50,000 in the company as part of its BREW) accelerator programme.

“We have a major opportunity to provide solutions to water quality and scarcity problems and the effects of climate change.”

Dean Amhaus, president and CEO of The Water Council, said: “We identified STAR Water early on as a strong start-up that can address issues of stormwater management and access to clean, safe freshwater around the world."

“The Water Council’s BREW Accelerator program provided STAR Water with the perfect springboard to expand from, particularly around the Great Lakes region and the Midwest,” added Rochfort.

“It has also raised our profile and reputation around the world as we navigate lucrative markets. We have a major opportunity to provide solutions to water quality and scarcity problems and the effects of climate change.”

Back in 2020, The Water Council redesigned the programme as BREW 2.0, to help late-stage start-ups build connections and grow capacity. The 2022 cohort will be announced in Spring.