Hello Kitty owner plunges 17% on share sale plan
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Hello Kitty fans shopping in the Sanrio Smile Shop that opened next to the Hello Kitty and Friends Cafe at Universal Studios Hollywood.
PHOTO: AFP
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TOKYO - Shares in the Japanese entertainment giant behind the popular Hello Kitty brand plunged on Nov 27 after major shareholders said they would reduce their stakes.
A statement issued on Nov 26 by Sanrio said shareholders including major bank Mitsubishi UFJ will let go of as many as 25.9 million shares, at a price to be determined later.
The move is intended to “expand and diversify the shareholders’ base”, Sanrio said.
Shares in the firm dived as much as 17 per cent on the morning of Nov 27 before paring the losses to around 14.6 per cent.
The mastermind behind Hello Kitty has seen its value more than double in 2024, driven in part by strong profits linked to the feline-like character whose cute, enigmatic face has won fans worldwide for decades.
Since chief executive Tomokuni Tsuji took over from his grandfather in 2020, Sanrio’s share price has soared more than sevenfold, pushing its market capitalisation to more than 1 trillion yen (S$8.9 billion).
Even as Hello Kitty turned 50 in 2024, the cultural phenomenon shows no signs of slowing, with a Warner Bros movie in the pipeline and a new theme park due to open in 2025 on China’s Hainan island. REUTERS
