OSK Holdings Berhad's (KLSE:OSK) largest shareholders are private companies with 50% ownership, individual investors own 29%
Simply Wall St
4 min read
Key Insights
Significant control over OSK Holdings Berhad by private companies implies that the general public has more power to influence management and governance-related decisions
50% of the company is held by a single shareholder (Yellow Rock (L) Foundation)
If you want to know who really controls OSK Holdings Berhad (KLSE:OSK), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 50% to be precise, is private companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, individual investors make up 29% of the company’s shareholders.
In the chart below, we zoom in on the different ownership groups of OSK Holdings Berhad.
What Does The Institutional Ownership Tell Us About OSK Holdings 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 OSK Holdings Berhad. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of OSK Holdings Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
KLSE:OSK Earnings and Revenue Growth May 13th 2023
We note that hedge funds don't have a meaningful investment in OSK Holdings Berhad. Our data shows that Yellow Rock (L) Foundation is the largest shareholder with 50% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 3.2% and 2.5% of the shares outstanding respectively, Leong Huat Ong and Employees Provident Fund of Malaysia are the second and third largest shareholders. Leong Huat Ong, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Furthermore, CEO Ju Ong is the owner of 1.3% of the company's shares.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of OSK Holdings 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. 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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own a reasonable proportion of OSK Holdings Berhad. Insiders own RM268m worth of shares in the RM2.0b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over OSK Holdings Berhad. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
We can see that Private Companies own 50%, of the shares on issue. 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.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 2 warning signs for OSK Holdings Berhad (1 is concerning) that you should be aware of.
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.
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