Velesto Energy Berhad (KLSE:VELESTO) most popular amongst sovereign wealth funds who own 51% of the shares, institutions hold 28%

Significant control over Velesto Energy Berhad by sovereign wealth funds implies that the general public has more power to influence management and governance-related decisions
Permodalan Nasional Berhad owns 51% of the company
28% of Velesto Energy Berhad is held by Institutions

If you want to know who really controls Velesto Energy Berhad (KLSE:VELESTO), then you’ll have to look at the makeup of its share registry. We can see that sovereign wealth funds own the lion’s share in the company with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Institutions, on the other hand, account for 28% of the company’s stockholders. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.

In the chart below, we zoom in on the different ownership groups of Velesto Energy Berhad.

Check out our latest analysis for Velesto Energy Berhad

ownership-breakdown

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Velesto Energy Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Velesto Energy Berhad, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth

Velesto Energy Berhad is not owned by hedge funds. Permodalan Nasional Berhad is currently the company’s largest shareholder with 51% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 7.8% and 3.5%, of the shares outstanding, respectively.

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

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Story Continues

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.

Our data suggests that insiders own under 1% of Velesto Energy Berhad in their own names. It seems the board members have no more than RM7.8m worth of shares in the RM1.6b company. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

The general public, who are usually individual investors, hold a 20% stake in Velesto Energy Berhad. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

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.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.

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

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.

Tags

Velesto Energy Berhad (KLSE:VELESTO) most popular amongst sovereign wealth funds who own 51% of the shares, institutions hold 28%