While institutions own 28% of LPI Capital Bhd (KLSE:LPI), private companies are its largest shareholders with 46% ownership

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

Sun, Nov 19, 2023, 6:39 PM 4 min read

Key Insights

LPI Capital Bhd's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
The top 2 shareholders own 52% of the company
28% of LPI Capital Bhd is held by Institutions

To get a sense of who is truly in control of LPI Capital Bhd (KLSE:LPI), it is important to understand the ownership structure of the business. We can see that private companies own the lion's share in the company with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, institutions make up 28% of the company’s shareholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.

Let's delve deeper into each type of owner of LPI Capital Bhd, beginning with the chart below.

See our latest analysis for LPI Capital Bhd

ownership-breakdown — KLSE:LPI Ownership Breakdown November 20th 2023

What Does The Institutional Ownership Tell Us About LPI Capital Bhd?

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 LPI Capital Bhd. 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 LPI Capital Bhd, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth — KLSE:LPI Earnings and Revenue Growth November 20th 2023

LPI Capital Bhd is not owned by hedge funds. Our data shows that Consolidated Teh Holdings Sdn Berhad is the largest shareholder with 43% of shares outstanding. With 9.4% and 8.5% of the shares outstanding respectively, Public Mutual Bhd. and Sompo Asset Management Co., Ltd. are the second and third largest shareholders.

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 LPI Capital Bhd

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.

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 some shares in LPI Capital Bhd. The insiders have a meaningful stake worth RM199m. Most would see this as a real positive. It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 22% 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

It seems that Private Companies own 46%, of the LPI Capital Bhd stock. 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. To that end, you should learn about the 2 warning signs we've spotted with LPI Capital Bhd (including 1 which is significant) .

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.