Napco says no current plans for IPO, market share in Saudi Arabia averages 30-35%

President of Napco National Co. Marwan Frem

Napco National Co.’s market share in Saudi Arabia averages 30-35%, President Marwan Frem told Argaam on the sidelines of GPCA Plastics conference, held in Riyadh.

He added that the company exports products to 54 countries, with 70% of its sales exported to the GCC and the remaining 30% distributed abroad.

The company operates in three sectors, consumer disposables, paper products including packaging, and plastics to serve other industries, such as the packaging of foods, medications, and personal care products.

Frem added that the firm had a plan to float its shares on the stock exchange before COVID-19, but it does not have any plans currently in this regard.

The market witnessed local demand for plastics products after the COVID-19 pandemic. High prices impacted the consumer disposables industry and created demand, however, it fell behind the current economic growth rate.

Napco’s financial performance is healthy. It has improved since 2019, Frem affirmed, noting that its plants maintained production to meet local demand despite the pandemic.

Elsewhere, Frem noted that prices of end products jumped 30% on the back of higher oil prices and the Russian-Ukrainian war, which also hit all sectors.

Exporting faced challenges, especially in shipping services, due to higher prices and lack of raw materials, he concluded.

Based in Dammam, Napco was founded in 1956. It produces paper and hygiene products like facial tissues, feminine napkins and adult and child diapers, according to data available with Argaam.