While individual investors own 16% of PropertyGuru Group Limited (NYSE:PGRU), private equity firms are its largest shareholders with 52% ownership
Simply Wall St
4 min read
Key Insights
Significant control over PropertyGuru Group by private equity firms implies that the general public has more power to influence management and governance-related decisions
The top 2 shareholders own 52% of the company
Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
A look at the shareholders of PropertyGuru Group Limited (NYSE:PGRU) can tell us which group is most powerful. We can see that private equity firms own the lion's share in the company with 52% ownership. 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 16% of the company’s shareholders.
Let's take a closer look to see what the different types of shareholders can tell us about PropertyGuru Group.
What Does The Institutional Ownership Tell Us About PropertyGuru Group?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that PropertyGuru Group 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 PropertyGuru Group's earnings history below. Of course, the future is what really matters.
NYSE:PGRU Earnings and Revenue Growth July 30th 2023
We note that hedge funds don't have a meaningful investment in PropertyGuru Group. The company's largest shareholder is TPG Capital, L.P., with ownership of 27%. For context, the second largest shareholder holds about 24% of the shares outstanding, followed by an ownership of 16% by the third-largest shareholder. Furthermore, CEO Hari Vembakkam Krishnan is the owner of 1.3% of the company's shares.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of PropertyGuru Group
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Shareholders would probably be interested to learn that insiders own shares in PropertyGuru Group Limited. It has a market capitalization of just US$747m, and insiders have US$46m worth of shares, in their own names. 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 16% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Equity Ownership
With a stake of 52%, private equity firms could influence the PropertyGuru Group board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
Public Company Ownership
It appears to us that public companies own 16% of PropertyGuru Group. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
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. Case in point: We've spotted 2 warning signs for PropertyGuru Group 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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