While private companies own 23% of EG Industries Berhad (KLSE:EG), individual investors are its largest shareholders with 32% ownership
A total of 13 investors have a majority stake in the company with 51% ownership
19% of EG Industries Berhad is held by insiders
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To get a sense of who is truly in control of EG Industries Berhad (KLSE:EG), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 32% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And private companies on the other hand have a 23% ownership in the company.
Let's delve deeper into each type of owner of EG Industries Berhad, beginning with the chart below.
View our latest analysis for EG Industries Berhad
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in EG Industries Berhad. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see EG Industries Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in EG Industries Berhad. With a 10.0% stake, CEO Pang Kang is the largest shareholder. Qyh Capital Sdn. Bhd. is the second largest shareholder owning 6.7% of common stock, and KAF Investment Funds Bhd. holds about 4.9% of the company stock.
After doing some more digging, we found that the top 13 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own a reasonable proportion of EG Industries Berhad. Insiders have a RM211m stake in this RM1.1b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over EG Industries Berhad. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
It seems that Private Companies own 23%, of the EG Industries Berhad stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
It's always worth thinking about the different groups who own shares in a company. But to understand EG Industries Berhad better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with EG Industries Berhad , and understanding them should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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