54% of the company is held by a single shareholder (Permodalan Nasional Berhad)
If you want to know who really controls MNRB Holdings Berhad (KLSE:MNRB), then you'll have to look at the makeup of its share registry. We can see that sovereign wealth funds own the lion's share in the company with 54% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, individual investors make up 29% of the company's shareholders.
Let's delve deeper into each type of owner of MNRB Holdings Berhad, beginning with the chart below.
See our latest analysis for MNRB Holdings Berhad
We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of MNRB Holdings Berhad, for yourself, below.
Hedge funds don't have many shares in MNRB Holdings Berhad. Looking at our data, we can see that the largest shareholder is Permodalan Nasional Berhad with 54% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. In comparison, the second and third largest shareholders hold about 5.0% and 1.0% of the stock.
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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
It seems insiders own a significant proportion of MNRB Holdings Berhad. Insiders have a RM248m stake in this RM1.7b 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 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over MNRB Holdings Berhad. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 1 warning sign for MNRB Holdings Berhad that you should be aware of before investing here.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.