What is the share of Agthia Group PJSC (ADX: AGTHIA) held by establishments?


If you want to know who really controls Agthia Group PJSC (ADX: AGTHIA), then you will have to look at the composition of its share register. Insiders often own a large number of younger and smaller companies, while large companies tend to have institutions as shareholders. We also tend to see a decline in insider ownership in companies that were previously state-owned.

Agthia Group PJSC has a market cap of د 4.9 billion, so we would expect some institutional investors to take notice of the stock. In the graphic below, we can see that the institutions are visible on the share register. We can zoom in on the different ownership groups, to find out more about Agthia Group PJSC.

See our latest review for Agthia Group PJSC

ADX: Distribution of AGTHIA ownership as of June 1, 2021

What does institutional ownership tell us about the Agthia PJSC Group?

Many institutions measure their performance against an index that approximates the local market. They therefore generally pay more attention to companies that are included in the main indices.

As you can see, institutional investors hold a significant share of the capital of Agthia Group PJSC. This suggests some credibility among professional investors. But we cannot rely on this fact alone since institutions sometimes make bad investments, as everyone else does. When several institutions have a stock, there is always a risk that they are in a “crowded trade”. When such a trade goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company with no history of growth. You can see Agthia Group PJSC’s historical revenue and revenue below, but keep in mind that there is always more to tell.

profit and revenue growth
ADX: AGTHIA Profits and Revenue Growth June 1, 2021

Agthia Group PJSC is not owned by hedge funds. The main shareholder of the company is Senaat General Holding Corporation, with a 59% stake. With such a stake in ownership, we infer that they have significant control over the future of the business. The second and third largest shareholders are Emirates International Investment Company LLC and Abu Dhabi Retirement Pensions & Benefits Fund, with an equal number of shares in their name at 4.2%.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. While there is some analyst coverage, the company is probably not widely covered. So that might get more attention, on the track.

Insider ownership of Agthia PJSC Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately responds to the advice. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

Most consider insider ownership to be positive because it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our data cannot confirm that board members personally own shares. Not all jurisdictions have the same rules for disclosing insider ownership, and it’s possible we’ve been missing something here. So you can click here to learn more about the CEO.

General public property

The general public holds 29% of the capital of Agthia Group PJSC. This size of ownership, while considerable, may not be enough to change company policy if the decision is not synchronized with other large shareholders.

Private company ownership

Our data indicates that private companies own 59% of the company’s shares. It may be worth taking a closer look. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the business.

Next steps:

It is always worth thinking about the different groups that own shares in a company. But to understand Agthia Group PJSC better, there are many other factors that we need to consider. For example, we discovered 2 warning signs for Agthia Group PJSC which you should be aware of before investing here.

If you’d rather find out what analysts are forecasting in terms of future growth, don’t miss this free analyst forecast report.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month in which the balance sheet is dated. This may not be consistent with figures in annual reports.

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