Institutions own 31% of Hibiscus Petroleum Berhad (KLSE:HIBISCS) shares but individual investors control 51% of the company
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
The considerable ownership by individual investors in Hibiscus Petroleum Berhad indicates that they collectively have a greater say in management and business strategy
47% of the business is held by the top 25 shareholders
To get a sense of who is truly in control of Hibiscus Petroleum Berhad (KLSE:HIBISCS), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual investors with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And institutions on the other hand have a 31% ownership in the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
In the chart below, we zoom in on the different ownership groups of Hibiscus Petroleum Berhad.
KLSE:HIBISCS Ownership Breakdown January 20th 2025
What Does The Institutional Ownership Tell Us About Hibiscus Petroleum 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 Hibiscus Petroleum Berhad. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Hibiscus Petroleum Berhad's earnings history below. Of course, the future is what really matters.
KLSE:HIBISCS Earnings and Revenue Growth January 20th 2025
Hedge funds don't have many shares in Hibiscus Petroleum Berhad. Hibiscus Upstream Sdn Bhd is currently the company's largest shareholder with 5.7% of shares outstanding. Eastspring Investments (Singapore) Limited is the second largest shareholder owning 5.1% of common stock, and Vee Mun Tang holds about 5.0% of the company stock. Furthermore, CEO Kenneth Pereira is the owner of 3.9% of the company's shares.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Hibiscus Petroleum Berhad
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 Hibiscus Petroleum Berhad. Insiders own RM170m worth of shares in the RM1.5b company. 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.
General Public Ownership
The general public, mostly comprising of individual investors, collectively holds 51% of Hibiscus Petroleum Berhad shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
Private Company Ownership
It seems that Private Companies own 7.7%, of the Hibiscus Petroleum Berhad stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Hibiscus Petroleum Berhad better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Hibiscus Petroleum Berhad you should be aware of, and 1 of them can't be ignored.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this freereport on analyst forecasts.
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.
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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.
