In This Article:
Key Insights
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The considerable ownership by private equity firms in Sembcorp Industries indicates that they collectively have a greater say in management and business strategy
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Temasek Holdings (Private) Limited owns 50% of the company
If you want to know who really controls Sembcorp Industries Ltd (SGX:U96), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are private equity firms with 50% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And individual investors on the other hand have a 34% ownership in the company.
In the chart below, we zoom in on the different ownership groups of Sembcorp Industries.
View our latest analysis for Sembcorp Industries
What Does The Institutional Ownership Tell Us About Sembcorp Industries?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Sembcorp Industries does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Sembcorp Industries' earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Sembcorp Industries. Temasek Holdings (Private) Limited is currently the company's largest shareholder with 50% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 3.9% of the shares outstanding, followed by an ownership of 2.0% by the third-largest shareholder.
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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Sembcorp Industries
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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.