With 85% ownership, Oxley Holdings Limited (SGX:5UX) insiders have a lot at stake

In This Article:

Key Insights

  • Significant insider control over Oxley Holdings implies vested interests in company growth

  • The top 2 shareholders own 73% of the company

  • Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of Oxley Holdings Limited (SGX:5UX), it is important to understand the ownership structure of the business. With 85% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

So, insiders of Oxley Holdings have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.

Let's take a closer look to see what the different types of shareholders can tell us about Oxley Holdings.

Check out our latest analysis for Oxley Holdings

ownership-breakdown
SGX:5UX Ownership Breakdown April 17th 2024

What Does The Lack Of Institutional Ownership Tell Us About Oxley Holdings?

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 many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. Oxley Holdings' earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

earnings-and-revenue-growth
SGX:5UX Earnings and Revenue Growth April 17th 2024

Oxley Holdings is not owned by hedge funds. With a 44% stake, CEO Chiat Kwong Ching is the largest shareholder. Meanwhile, the second and third largest shareholders, hold 29% and 11%, of the shares outstanding, respectively. Interestingly, the second-largest shareholder, See Ching Low is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.