Sovereign wealth funds among MNRB Holdings Berhad's (KLSE:MNRB) largest stockholders and were hit after last week's 11% price drop

Key Insights

• MNRB Holdings Berhad's significant sovereign wealth funds ownership suggests that the key decisions are influenced by shareholders from the larger public
• 54% of the company is held by a single shareholder (Permodalan Nasional Berhad)
• Insiders own 14% of MNRB Holdings Berhad

A look at the shareholders of MNRB Holdings Berhad (KLSE:MNRB) can tell us which group is most powerful. The group holding the most number of shares in the company, around 54% to be precise, is sovereign wealth funds. 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 RM1.7b last week, sovereign wealth funds would have faced the highest losses than any other shareholder groups of the company.

Let's take a closer look to see what the different types of shareholders can tell us about MNRB Holdings Berhad.

View our latest analysis for MNRB Holdings Berhad

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

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

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. Alternatively, there might be something about the company that has kept institutional investors away. MNRB Holdings Berhad might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

MNRB Holdings Berhad is not owned by hedge funds. The company's largest shareholder is Permodalan Nasional Berhad, with ownership of 54%. This implies that they have majority interest control of the future of the company. With 5.0% and 1.0% of the shares outstanding respectively, Goon Khing Kong and Goon Siong Kong are the second and third largest shareholders.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 MNRB 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. 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 MNRB Holdings Berhad. Insiders own RM240m worth of shares in the RM1.7b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 29% stake in MNRB Holdings Berhad. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand MNRB Holdings Berhad better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with MNRB Holdings Berhad (including 1 which is a bit unpleasant) .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com