KUALA LUMPUR: Elridge Energy Holdings Bhd is targeting to have its Kuantan facility, a key project funded by its 2024 IPO proceeds, operational by early next year, as land acquisition and regulatory approvals continue to delay the start of construction.
Executive director and finance director Salihudin Mohd Razali said the group is currently operating from a rented site in Kuantan as an interim measure while it finalises land negotiations, saying that prices have risen since the company’s listing on the ACE Market in August 2024.
“The pain of having a listed company is that people know you have money, so prices have also changed. We need to have the right place, the right setup and the approvals,” he told reporters after its second AGM today.
Under its IPO, Elridge had allocated RM47 million, or 46.31% of its gross proceeds, to fund land acquisition and construction of the new Kuantan facility, which is designed to house two PKS production lines with an estimated annual capacity of 240,000 tonnes once fully operational. The group had originally targeted completion of the Kuantan plant, along with two other new factories in Pasir Gudang and Lahad Datu, by July 2025.
While the Pasir Gudang and Lahad Datu facilities are now operational, he said the Kuantan permanent plant remains in the planning stage. Salihudin said about RM50 million from the IPO proceeds remains unutilised, with the bulk earmarked for the Kuantan expansion.
Construction has yet to begin as the group continues to negotiate with landowners and work through approval processes. Salihudin added the group is taking a more measured approach to securing a site at the right value, given the change in land pricing dynamics following its listing.
