Sovereign wealth funds own 19% of Amway (Malaysia) Holdings Berhad (KLSE:AMWAY) shares but private companies control 52% of the company

editorial-team@simplywallst.com (Simply Wall St)

Thu, Oct 24, 2024, 7:36 PM 4 min read

Key Insights

Significant control over Amway (Malaysia) Holdings Berhad by private companies implies that the general public has more power to influence management and governance-related decisions
52% of the company is held by a single shareholder (Alticor Global Holdings Inc.)
Institutional ownership in Amway (Malaysia) Holdings Berhad is 15%

Every investor in Amway (Malaysia) Holdings Berhad (KLSE:AMWAY) should be aware of the most powerful shareholder groups. We can see that private companies own the lion's share in the company with 52% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, sovereign wealth funds make up 19% of the company’s shareholders.

In the chart below, we zoom in on the different ownership groups of Amway (Malaysia) Holdings Berhad.

Check out our latest analysis for Amway (Malaysia) Holdings Berhad

ownership-breakdown — KLSE:AMWAY Ownership Breakdown October 25th 2024

What Does The Institutional Ownership Tell Us About Amway (Malaysia) Holdings Berhad?

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.

Amway (Malaysia) Holdings Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Amway (Malaysia) Holdings Berhad's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — KLSE:AMWAY Earnings and Revenue Growth October 25th 2024

Amway (Malaysia) Holdings Berhad is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Alticor Global Holdings Inc. with 52% of shares outstanding. This implies that they have majority interest control of the future of the company. Meanwhile, the second and third largest shareholders, hold 19% and 8.9%, of the shares outstanding, respectively.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Amway (Malaysia) 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.

We can see that insiders own shares in Amway (Malaysia) Holdings Berhad. In their own names, insiders own RM34m worth of stock in the RM1.2b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 11% stake in the company, and hence can't easily be ignored. 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.

Private Company Ownership

Our data indicates that Private Companies hold 52%, of the company's shares. 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:

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 Amway (Malaysia) Holdings Berhad (1 is a bit concerning) that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report 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.