Naqi Water Chairman Details Shareholder Value Focus, Dividend Policy
Naqi Water Company is prioritizing long-term shareholder interests through a carefully structured dividend policy and a commitment to responsible corporate governance, according to recent statements from company leadership. The company’s board members have demonstrated a willingness to forgo potential financial gains to ensure sustainable growth and investor confidence.
Prioritizing Shareholders Over Short-Term Gains
The Chairman of the Board of Directors, Amin Al Mallah, revealed that board remuneration is comparatively modest relative to other companies in the sector, despite Naqi Water’s profitability. He further disclosed having previously waived portions of his own compensation. This decision reflects a broader philosophy of aligning the interests of leadership with those of the company’s investors.
“There are other companies that are making losses and yet distribute bonuses to members of their boards of directors amounting to 10 million riyals,” a senior official stated, “while Naqi Company is keen to follow a different approach in this aspect.”
Strategic IPO Pricing
Al Mallah also detailed a strategic decision made during the company’s initial public offering (IPO). Al Jazira Capital initially valued the stock at 84 riyals, but Al Mallah advocated for a lower offering price of 69 riyals. This resulted in the company foregoing approximately 90 million riyals in potential revenue.
According to Al Mallah, this deliberate undervaluation was intended to benefit investors who placed their trust in the company. “This decision came from the standpoint of what could be provided to investors who trusted the company,” he explained, “stressing that the offering was priced in a way that served the interests of shareholders.”
Navigating Past Challenges and Future Growth
Naqi Water has overcome past financial hurdles, including a period of two and a half years where profit distributions were suspended to address financial obligations. The company is now focused on expansion, with plans to establish a new factory in Riyadh and bring a poultry factory into production soon.
Dividend Distribution Policy and Shareholder Commitment
The Board of Directors has recommended a three-year dividend distribution policy: 2 riyals per share in fiscal year 2026, 3 riyals in 2027, and 4 riyals in 2028. Demonstrating further commitment, major shareholders Amin bin Abdullah Al-Mallah and Saqa United Group have pledged to waive a portion of their dividends – 50% in 2026, 55% in 2027, and 60% in 2028. This move underscores a dedication to reinvesting in the company’s future and maximizing long-term value for all stakeholders.
This commitment to shareholder value, coupled with strategic investments in production capacity, positions Naqi Water for continued growth and success in the competitive beverage market.
