Individual investors own 41% of Mapletree Pan Asia Commercial Trust (SGX:N2IU) shares but private equity firms control 49% of the company

Key Insights

• Mapletree Pan Asia Commercial Trust's significant private equity firms ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 2 shareholders own 51% of the company
• Institutional ownership in Mapletree Pan Asia Commercial Trust is 10%

A look at the shareholders of Mapletree Pan Asia Commercial Trust (SGX:N2IU) can tell us which group is most powerful. The group holding the most number of shares in the company, around 49% to be precise, is private equity firms. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And individual investors on the other hand have a 41% ownership in the company.

Let's take a closer look to see what the different types of shareholders can tell us about Mapletree Pan Asia Commercial Trust.

View our latest analysis for Mapletree Pan Asia Commercial Trust

What Does The Institutional Ownership Tell Us About Mapletree Pan Asia Commercial Trust?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Mapletree Pan Asia Commercial Trust does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Mapletree Pan Asia Commercial Trust's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Mapletree Pan Asia Commercial Trust. Looking at our data, we can see that the largest shareholder is Temasek Holdings (Private) Limited with 49% of shares outstanding. In comparison, the second and third largest shareholders hold about 1.9% and 1.5% of the stock.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Mapletree Pan Asia Commercial Trust

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.

Our most recent data indicates that insiders own less than 1% of Mapletree Pan Asia Commercial Trust. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around S$4.8m worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 41% 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 Equity Ownership

Private equity firms hold a 49% stake in Mapletree Pan Asia Commercial Trust. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Mapletree Pan Asia Commercial Trust (of which 1 shouldn't be ignored!) you should know about.

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.