Salik Company P.J.S.C.’s (DFM:SALIK) top owners are private equity firms with 75% stake, while 19% is held by individual investors

Key Insights

• Significant control over Salik Company P.J.S.C by private equity firms implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is DIF – Dubai Investment Fund with a 75% stake
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

A look at the shareholders of Salik Company P.J.S.C. (DFM:SALIK) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private equity firms with 75% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Individual investors, on the other hand, account for 19% of the company’s stockholders.

Let’s delve deeper into each type of owner of Salik Company P.J.S.C, beginning with the chart below.

Check out our latest analysis for Salik Company P.J.S.C

What Does The Institutional Ownership Tell Us About Salik Company P.J.S.C?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Salik Company P.J.S.C. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Salik Company P.J.S.C’s historic earnings and revenue below, but keep in mind there’s always more to the story.

Salik Company P.J.S.C is not owned by hedge funds. DIF – Dubai Investment Fund is currently the largest shareholder, with 75% of shares outstanding. This implies that they have majority interest control of the future of the company. With 1.8% and 0.9% of the shares outstanding respectively, Norges Bank Investment Management and The Vanguard Group, Inc. are the second and third largest shareholders.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Salik Company P.J.S.C

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.

Our data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

With a 19% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Salik Company P.J.S.C. 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.

Private Equity Ownership

Private equity firms hold a 75% stake in Salik Company P.J.S.C. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example – Salik Company P.J.S.C has 3 warning signs we think you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.