Al Abdullatif Industrial Investment Company's (TADAWUL:2340) largest shareholders are private companies who were rewarded as market cap surged ر.س164m last week

Key Insights

• The considerable ownership by private companies in Al Abdullatif Industrial Investment indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Al-Abdullatif Group Holding Company with a 60% stake
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of Al Abdullatif Industrial Investment Company (TADAWUL:2340), 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 60% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies collectively scored the highest last week as the company hit ر.س1.4b market cap following a 13% gain in the stock.

Let's delve deeper into each type of owner of Al Abdullatif Industrial Investment, beginning with the chart below.

See our latest analysis for Al Abdullatif Industrial Investment

What Does The Lack Of Institutional Ownership Tell Us About Al Abdullatif Industrial Investment?

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. 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. Al Abdullatif Industrial Investment's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

We note that hedge funds don't have a meaningful investment in Al Abdullatif Industrial Investment. The company's largest shareholder is Al-Abdullatif Group Holding Company, with ownership of 60%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Omar Al Abdullatif is the second largest shareholder owning 5.7% of common stock, and Suleiman Omar Al Abdullatif holds about 2.5% of the company stock. Suleiman Omar Al Abdullatif, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

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 Al Abdullatif Industrial Investment

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Shareholders would probably be interested to learn that insiders own shares in Al Abdullatif Industrial Investment Company. As individuals, the insiders collectively own ر.س118m worth of the ر.س1.4b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 31% 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

It seems that Private Companies own 60%, of the Al Abdullatif Industrial Investment stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the 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. Take risks for example - Al Abdullatif Industrial Investment has 1 warning sign we think you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.