While institutions own 21% of Taliworks Corporation Berhad (KLSE:TALIWRK), private companies are its largest shareholders with 55% ownership
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
Significant control over Taliworks Corporation Berhad by private companies implies that the general public has more power to influence management and governance-related decisions
To get a sense of who is truly in control of Taliworks Corporation Berhad (KLSE:TALIWRK), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 55% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, institutions make up 21% of the company’s shareholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.
In the chart below, we zoom in on the different ownership groups of Taliworks Corporation Berhad.
KLSE:TALIWRK Ownership Breakdown November 24th 2024
What Does The Institutional Ownership Tell Us About Taliworks Corporation 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.
We can see that Taliworks Corporation Berhad does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Taliworks Corporation Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
KLSE:TALIWRK Earnings and Revenue Growth November 24th 2024
We note that hedge funds don't have a meaningful investment in Taliworks Corporation Berhad. The company's largest shareholder is Lgb Group Sdn Bhd, with ownership of 50%. Meanwhile, the second and third largest shareholders, hold 7.6% and 5.3%, of the shares outstanding, respectively.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 58% stake.
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. 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 Taliworks Corporation Berhad
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.
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.
It seems insiders own a significant proportion of Taliworks Corporation Berhad. Insiders own RM185m worth of shares in the RM1.5b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 12% 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 Company Ownership
Our data indicates that Private Companies hold 55%, of the company's shares. 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:
It's always worth thinking about the different groups who own shares in a company. But to understand Taliworks Corporation Berhad better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Taliworks Corporation Berhad .
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.
