Private companies account for 53% of Azeus Systems Holdings Ltd.’s (SGX:BBW)
Key Insights
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Azeus Systems Holdings’ significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
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The largest shareholder of the company is Mu Xia Ltd. with a 51% stake
If you want to know who really controls Azeus Systems Holdings Ltd. (SGX:BBW), 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 private companies with 53% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And individual insiders on the other hand have a 31% ownership in the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.
Let’s delve deeper into each type of owner of Azeus Systems Holdings, beginning with the chart below.
View our latest analysis for Azeus Systems Holdings
What Does The Lack Of Institutional Ownership Tell Us About Azeus Systems Holdings?
Small companies that are not very actively traded often lack institutional investors, but it’s less common to see large companies without them.
There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. 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. Azeus Systems Holdings might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
Azeus Systems Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Mu Xia Ltd. with 51% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 27% and 1.9% of the shares outstanding respectively, Wan Lik Lee and Teik Khoo are the second and third largest shareholders. Wan Lik Lee, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.
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. We’re not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of Azeus Systems Holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
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.
It seems insiders own a significant proportion of Azeus Systems Holdings Ltd.. Insiders own S$80m worth of shares in the S$258m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 15% stake in Azeus Systems Holdings. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
Our data indicates that Private Companies hold 53%, of the company’s shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it’s hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Next Steps:
It’s always worth thinking about the different groups who own shares in a company. But to understand Azeus Systems Holdings better, we need to consider many other factors.
I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.
Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.
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…
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