Private companies are International Business Settlement Holdings Limited's (HKG:147) biggest owners and were hit after market cap dropped HK$163m

Key Insights

• The considerable ownership by private companies in International Business Settlement Holdings indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Long Grand Limited with a 51% stake
• 13% of International Business Settlement Holdings is held by insiders

Every investor in International Business Settlement Holdings Limited (HKG:147) should be aware of the most powerful shareholder groups. With 51% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As market cap fell to HK$1.4b last week, private companies would have faced the highest losses than any other shareholder groups of the company.

In the chart below, we zoom in on the different ownership groups of International Business Settlement Holdings.

See our latest analysis for International Business Settlement Holdings

What Does The Lack Of Institutional Ownership Tell Us About International Business Settlement Holdings?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. International Business Settlement Holdings might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

International Business Settlement Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Long Grand Limited with 51% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Feng Luo is the second largest shareholder, holding 13%.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of International Business Settlement Holdings

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.

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.

It seems insiders own a significant proportion of International Business Settlement Holdings Limited. It has a market capitalization of just HK$1.4b, and insiders have HK$175m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 37% stake in International Business Settlement Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 51%, of the International Business Settlement Holdings 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:

It's always worth thinking about the different groups who own shares in a company. But to understand International Business Settlement Holdings better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with International Business Settlement Holdings , and understanding them should be part of your investment process.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.