Oceanus Group Limited'S Market Cap Surged S$26m Last Week, Individual Investors Who Have A Lot Riding On The Company Were Rewarded

Simply Wall St.
22 Jan

To get a sense of who is truly in control of Oceanus Group Limited (SGX:579), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 55% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, individual investors collectively scored the highest last week as the company hit S$180m market cap following a 17% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Oceanus Group.

Check out our latest analysis for Oceanus Group

SGX:579 Ownership Breakdown January 21st 2025

What Does The Lack Of Institutional Ownership Tell Us About Oceanus Group?

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 multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Oceanus Group might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

SGX:579 Earnings and Revenue Growth January 21st 2025

We note that hedge funds don't have a meaningful investment in Oceanus Group. Looking at our data, we can see that the largest shareholder is Alacrity Investment Group Limited with 17% of shares outstanding. Heng Kang Koh is the second largest shareholder owning 11% of common stock, and Khi Invest Ltd holds about 4.0% of the company stock. Heng Kang Koh, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

On studying our ownership data, we found that 15 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Oceanus Group

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in Oceanus Group Limited. Insiders own S$24m worth of shares in the S$180m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 55% stake in Oceanus Group, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

Our data indicates that Private Companies hold 31%, 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 Oceanus Group better, we need to consider many other factors. Be aware that Oceanus Group is showing 2 warning signs in our investment analysis , you should know about...

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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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