Citi: BLOKS (00325) Controlling Shareholder Reduces Stake, Short-Term Investor Sentiment Expected to Be Under Pressure

Citi: BLOKS (00325) Controlling Shareholder Reduces Stake, Short-Term Investor Sentiment Expected to Be Under Pressure Citi issued a research report stating that BLOKS (00325)'s controlling shareholder has reduced its stake by approximately 1.56%, and investor sentiment is expected to be negatively affected in the short term. The bank maintains its "Buy" rating and target price of HK$82. Zhu Weisong, controlling shareholder, chairman of the board, executive director and chief executive officer of BLOKS (00325), sold approximately 3.849 million shares at HK$65.28 per share, equivalent to approximately 1.56% of the company's equity, at a price representing a discount of approximately 6% to the closing price on October 21, cashing out more than HK$250 million. Citi noted that the proceeds are used to meet the controlling shareholder's own funding needs and financial arrangements, and are unrelated to BLOKS' business. Following the reduction, Zhu Weisong's shareholding decreased from 53.59% to 52.03%. Investor sentiment is expected to be negatively affected in the short term, as the market focuses on the controlling shareholder's funding needs and draws parallels to the situation of HAIDILAO (06862).