If you want to know who really controls IGB Commercial Real Estate Investment Trust (KLSE:IGBCR), then you’ll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are public companies with 54% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
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 IGB Commercial Real Estate Investment Trust does have institutional investors; and they hold a good portion of the company’s stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 IGB Commercial Real Estate Investment Trust’s historic earnings and revenue below, but keep in mind there’s always more to the story.
KLSE:IGBCR Earnings and Revenue Growth January 13th 2025
IGB Commercial Real Estate Investment Trust is not owned by hedge funds. IGB Berhad is currently the company’s largest shareholder with 54% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 8.1% and 4.2% of the shares outstanding respectively, Wah Seong (Malaya) Trading Co Sdn Bhd and Tan Chin Nam Sdn Bhd are the second and third largest shareholders.
Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be achieved by studying analyst sentiments. There is some analyst coverage of the stock, but it could still become more well known, with time.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 IGB Commercial Real Estate Investment Trust. In their own names, insiders own RM63m worth of stock in the RM1.4b 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.
The general public– including retail investors — own 11% 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.
We can see that Private Companies own 19%, of the shares on issue. 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.
We can see that public companies hold 54% of the IGB Commercial Real Estate Investment Trust shares on issue. We can’t be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
It’s always worth thinking about the different groups who own shares in a company. But to understand IGB Commercial Real Estate Investment Trust better, we need to consider many other factors. Take risks for example – IGB Commercial Real Estate Investment Trust has 1 warning sign we think you should be aware of.
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.
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