Shares in the Japanese entertainment giant behind the popular Hello Kitty brand plunged on Wednesday after major shareholders said they would reduce their stakes.

A statement issued Tuesday by Sanrio said shareholders including major bank Mitsubishi UFJ will let go of as many as 25.9 million shares, sold 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 percent on Wednesday morning before paring the losses to around 14.6 percent.

The mastermind behind Hello Kitty had seen its value more than double this year, driven in part by strong profits linked to the feline-like character whose cute, enigmatic face has adored fans worldwide for decades.

Since CEO Tomokuni Tsuji took over from his grandfather in 2020, its share price has soared more than seven-fold, pushing its market capitalisation to more than one trillion yen ($6.8 billion).

Even as Hello Kitty turned 50 this year, the cultural phenomenon shows no sign of slowing, with a Warner Bros movie in the pipeline and a new theme park due to open next year on China's Hainan island.

tmo/stu-kaf/dan

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