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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
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Permodalan Nasional Berhad owns 51% of the company
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
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.
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.
