Siam Cement Pcl, one of Thailand’s largest industrial conglomerates, scrapped a proposed initial public offering for its chemicals unit, citing unfavorable market conditions.

SCG Chemicals Pcl’s IPO may be inappropriate at this time after taking into account the readiness of investors to take this sizable share offering, Siam Cement said Monday in a statement to the exchange. SCG Chemicals’ earlier IPO filing with Thailand’s Securities & Exchange Commission will expire on Oct. 4 and can’t be extended, though the company intends to proceed with the listing in due course after the situation improves, the statement showed.

The company was seeking to raise about $2 billion to $3 billion in its first-time share sale, Bloomberg News reported last year. SCG Chemicals had planned to offer as many as 3.85 billion new shares to raise funds for business expansion and debt payment, according to a regulatory filing at the time.

International funds have dumped about $3.8 billion of Thai equities this year, sending the key stock index down more than 6%. The delay in forming a new national government has hurt business and consumer confidence, leading to slower-than-expected growth in Southeast Asia’s second-biggest economy.

Read More: Thai Hopes of Big IPOs Quashed by Political Gridlock

The political impasse is finally nearing its end. Thailand’s list of minister portfolios is expected to be submitted to the cabinet secretariat Monday for qualification assessment, according to Prime Minister Srettha Thavisin. Srettha received the parliamentary and royal endorsement to become the country’s new prime minister more than three months after the May 14 general election.

Siam Cement, in which King Maha Vajiralongkorn is the largest shareholder, was established in 1913 by the monarchy to support the country’s economic and industrial development, according to its website. The company’s shares dropped as much as 1.3% on Monday, extending this year’s slump to 7.9%.

SCG Chemicals had planned to use the IPO proceeds to strengthen its capacity and expand the business in Southeast Asia in order to tap growing demand for its products, according to an earlier presentation. It has a strong presence in Indonesia and Vietnam as well as in Thailand.

Siam Cement CEO Roongrote Rangsiyopash will be replaced by Thammasak Sethaudom effective Jan. 1, as Roongrote is retiring from office, the company said Monday in a separate statement to the exchange.

Bualuang Securities Pcl, Kasikorn Securities Pcl and SCB Securities Co. were arranging SCG Chemicals’ offering, the regulatory filing showed.

(Adds Siam Cement’s share price in sixth paragraph)