The Ministry of Petroleum and Mineral Resources has changed plans to generate capital for petrochemical projects through the Egyptian Exchange, reported Daily News Egypt.

Current Prime Minister Sherif Ismail, during his time as minister of petroleum, announced that the ministry was considering launching an initial public offering (IPO) for petrochemical projects to raise funds, and in January presidential spokesperson, Alaa Youssef, highlighted that launching IPOs for public sector companies is beneficial, reported Reuters.

An official at the Egyptian Petrochemicals Holding Company (ECHEM) said that the idea of financing new projects through IPOs was abandoned due to the low amount of interest expected.

New petrochemical projects are in need of large investments and as such, IPO will not be sufficient to cover their costs. ECHEM has begun negotiations with a number of countries to finance those projects.