Stock Analysis

What Type Of Shareholders Own The Most Number of Vivocom Intl Holdings Berhad (KLSE:VIVOCOM) Shares?

KLSE:VINVEST
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The big shareholder groups in Vivocom Intl Holdings Berhad (KLSE:VIVOCOM) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

Vivocom Intl Holdings Berhad is not a large company by global standards. It has a market capitalization of RM487m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions are not really that prevalent on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Vivocom Intl Holdings Berhad.

Check out our latest analysis for Vivocom Intl Holdings Berhad

ownership-breakdown
KLSE:VIVOCOM Ownership Breakdown November 27th 2020

What Does The Lack Of Institutional Ownership Tell Us About Vivocom Intl Holdings Berhad?

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 are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Vivocom Intl Holdings Berhad might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

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KLSE:VIVOCOM Earnings and Revenue Growth November 27th 2020

We note that hedge funds don't have a meaningful investment in Vivocom Intl Holdings Berhad. Looking at our data, we can see that the largest shareholder is the CEO Chia Teong Seri with 23% of shares outstanding. With 10.0% and 3.1% of the shares outstanding respectively, Li-Hann Ang and Ruey Yin Fan are the second and third largest shareholders.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 25 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Vivocom Intl 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. 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 that insiders own more than half the Vivocom Intl Holdings Berhad stock. This gives them a lot of power. That means they own RM257m worth of shares in the RM487m company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public holds a 47% stake in Vivocom Intl Holdings Berhad. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Vivocom Intl Holdings Berhad better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Vivocom Intl Holdings Berhad you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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. 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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