An investor in Pop Mart International Group Ltd., whose fans include K-pop band Blackpink's Lisa, raised US$101 million ($132 million) in a block trade after the Chinese toy company's shares hit a fresh record this week.
The undisclosed seller offloaded about 4.1 million shares at HK$192.95 ($32.50) apiece, a 2.5% discount to Pop Mart's close on Tuesday, according to terms of the deal seen by Bloomberg News. The block trade comes about a month after Pop Mart reported profit that more than doubled last year thanks to the popularity of its Labubu dolls adored by celebrities.
The toy company is the top gainer in the MSCI China Index over the last 12 months, with its shares jumping more than 470%. The stock fell as much as 3% in Hong Kong trading on Wednesday.
The fervor for Pop Mart's toys has turned it into a global phenomenon, with fans sometimes queuing for hours outside stores for new releases. Its share rally has made its market value bigger than companies including Hello Kitty owner Sanrio Co. and Barbie maker Mattel Inc.
"We see it as taking profit," said Gary Tan, portfolio manager at Allspring Global Investments. "The deal was only done at a small discount to the last close despite a sharp gains in popmart's share price over the last two weeks."
