Borneo Waste Industries offers ECF investors a clear exit

• Deloitte Corporate Advisory Services has valued BWI at approximately US$24.14 million
• Offer for sale in a private placement seen in the 12 months following the ECF campaign

BORNEO Waste Industries (BWI) is offering investors a clear and relatively early exit at the launch of its equity crowdfunding (ECF) campaign on Dec 19 with Ata Plus. In this ECF round, BWI is prepared to offer investors a 6.7% stake in the company for US$724,125 (RM3 million).

With Deloitte Corporate Advisory Services Sdn Bhd as its financial advisor, BWI has been given a net present value of approximately US$24.14 million (RM100 million), which values the 6.7% stake offered to investors at US$1.62 million (RM6.7 million).

[Para edited for accuracy.]

Investors participating in this ECF stage would have an opportunity to realise the value of this investment through an offer for sale in a private placement exercise which is anticipated to occur within the subsequent 12 months following the ECF campaign.

Established in November 2012, BWI is a waste management service provider based in Sabah with offices in Kota Kinabalu and Kuala Lumpur, Malaysia.

BWI executed a 30-year concession agreement with Dewan Bandaraya Kota Kinabalu (Kota Kinabalu City Hall) to develop and operate an Integrated Waste Management Processing Plant (IWMPP) at the Kayu Madang Sanitary Landfill (KMSL) in Telipok, Sabah from April 2018 to April 2048.

The IWMPP’s project area is 20 acres and is within the 115 acre KMSL site. It is also situated adjacent to the Kota Kinabalu Industrial Park.

The KMSL is the central disposal site for municipal solid waste (MSW) from Kota Kinabalu, Kota Belud, Penampang, Putatan and Tuaran. BWI will be developing the IWMPP to recycle MSW and produce downstream intermediary and final products.

The project aims to recycle up to 90% of the waste from the KMSL by processing up to 800 tonnes per day of MSW through environmentally sustainable technologies to produce useful intermediary and final products for various industries, such as agriculture, construction, manufacturing, commercial and energy.

By doing so, BWI will extend the lifespan of the KMSL and reduce the generation of landfill gases that are harmful to the environment.

Through the selling of products such as recovered plastics, organic fertiliser, ferrous metal, compressed natural gas, used tyre crumbs and other recyclables, BWI is confident of the company’s operating sustainability and future potential and aims to provide other services such as generating renewable energy by installing waste to energy facilities.

“The IWMPP represents a major step forward to how we will treat our waste in the future. The days of just dumping waste in landfills are over and we are excited to bring innovation to this sector for the benefit of the environment and community,” said BWI founder and chief executive officer Raven Sockanathan.

“We also want to offer the ordinary person the opportunity to benefit financially by investing at this early stage at a very favourable valuation and to be able to exit early at the next funding round, which is expected to be completed within 12 months, with hopefully a generous upside,” Raven added.

“BWI is the type of company we love seeing on our platform, not only for the potential fantastic returns they aim to offer investors, but also for the significant social impact of helping to clean up the environment and to recycle waste materials,” said Ata Plus co-founder and director Elain Lockman.