With 82% ownership, Multi-Chem Limited (SGX:AWZ) insiders have a lot riding on the company's future

Yahoo

19-05-2025

Multi-Chem's significant insider ownership suggests inherent interests in company's expansion
The top 2 shareholders own 68% of the company
Past performance of a company along with ownership data serve to give a strong idea about prospects for a business
We've discovered 1 warning sign about Multi-Chem. View them for free.
If you want to know who really controls Multi-Chem Limited (SGX:AWZ), 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 individual insiders with 82% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.
In the chart below, we zoom in on the different ownership groups of Multi-Chem.
View our latest analysis for Multi-Chem
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Multi-Chem, for yourself, below.
Multi-Chem is not owned by hedge funds. With a 40% stake, CEO Suan Sai Foo is the largest shareholder. Meanwhile, the second and third largest shareholders, hold 28% and 12%, of the shares outstanding, respectively. Interestingly, the second-largest shareholder, Juat Hoon Han is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.
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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
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. 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.
Our most recent data indicates that insiders own the majority of Multi-Chem Limited. This means they can collectively make decisions for the company. Given it has a market cap of S$281m, that means they have S$231m worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.
With a 18% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Multi-Chem. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Multi-Chem .
Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.
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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