At last, the list of the Top 30 shareholders are out after the much fanfare about the stocks being placed out to mainly cornerstone investors. For IHH's IPO, we know why most of the stocks are left for the institutionals. Just look below after 9 months from its listing, Top 30 consist of a whopping 92.83% of the total shares held.
The tightly held shares is bad as it would allow the misperception that Malaysian shares can be controlled. It is allright that they are held by the large funds like Blackrock, JP Morgan, Tiger Funds but not like this. On one hand we try to keep a minimum free float but on the other hand a KLCI company has such a large number of its holdings by so few hands. Yes, it has lots of shares but this is still not right.
For those whom would like to know as a comparison, UMW has its Top 30 holding less than 80%.
Telekom Malaysia has around 80% as below.